Integration of verification tokens with portable computing devices

ABSTRACT

Apparatuses, methods, and systems pertaining to the verification of portable consumer devices are disclosed. In one implementation, a verification token is communicatively coupled to a computer by a USB connection so as to use the computer&#39;s networking facilities. The verification token reads identification information from a user&#39;s portable consumer device (e.g., credit card) and sends the information to a validation entry over a communications network using the computer&#39;s networking facilities. The validation entity applies one or more validation tests to the information that it receives from the verification token. If a selected number of tests are passed, the validation entity sends a device verification value to the verification token, and optionally to a payment processing network. The verification token may enter the device verification value into a CVV field of a web page appearing on the computer&#39;s display, or may display the value to the user using the computer&#39;s display.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.13/250,981 filed Sep. 30, 2011 which is a continuation-in-part of U.S.patent application Ser. No. 12/780,657, entitled “Verification ofPortable Consumer Devices,” filed May 14, 2010, which is acontinuation-in-part of U.S. patent application Ser. No. 12/712,148,entitled “Verification of Portable Consumer Devices,” filed Feb. 24,2010, each of which claimed priority to U.S. Provisional PatentApplication No. 61/178,636, entitled “Dynamic Data Authentication,”filed May 15, 2009. U.S. patent application Ser. No. 13/250,981 alsoclaims priority to U.S. Provisional Patent Application No. 61/406,071,entitled “Integration of Verification Tokens With Portable ComputingDevices,” filed Oct. 22, 2010. The contents of all of theabove-identified U.S. Applications are hereby incorporated in theirentirety by reference for all purposes.

BACKGROUND

As methods and devices for engaging in financial transactions haveincreased, old problems such as fraud and counterfeiting persist.

One of the primary sources of fraud, which is prevalent in the creditcard industry, is skimming. Skimming refers to the electronic copying ofa card's magnetic stripe data to create counterfeit cards.

Skimming is predominantly a phenomenon afflicting static magnetic stripebased transactions. This is because the magnetic stripe, which is placedon the back of a transaction card and stores a variety of data on threeseparate tracks, is a passive medium. In other words, the digitalcontent of the magnetic stripe can be perfectly copied, without anydifference between the copy and the original.

One of the primary means by which skimming can be prevented is for theconsumer to closely monitor the whereabouts of his transaction card.This may allow the consumer to prevent the card from being swipedthrough inappropriate devices. However, as contactless cards evolve, theclassic skimming problem comes along with it when using static data. Infact, in a wireless environment the opportunity to skim magnetic stripedata is more prevalent. In a wireless environment, a potential skimmerneed not physically possess the card to be skimmed nor have access toany of the physical equipment (e.g., POS terminal, communication lines,etc.) which is required for skimming in a wire based environment. Askimmer can, without the knowledge of the consumer or merchant,intercept the wireless transaction and copy the data being transmittedfrom the card to POS terminal.

To address the above problems, a dCVV or a dynamic card verificationvalue can be used. For example, various systems and methods forgenerating dCVV's are discussed in U.S. patent application Ser. No.10/642,878 entitled “Method and System for Generating a DynamicVerification Value” filed on Aug. 18, 2003, and in U.S. patentapplication Ser. No. 11/764,376 entitled “On-Line Payment Transactions”filed on Jan. 29, 2008. Both of these applications are incorporatedherein by reference in their entirely for all purposes.

In addition to generating a dCVV, a dCVV can be more effective forpreventing fraud when it is securely received by a consumer. However,securely receiving and using a dCVV cannot overly interfere with aconsumer's experience conducting a transaction. A consumer might not usethe dCVV or a consumer might conduct fewer transactions if theinconvenience of receiving and using a dCVV is too great.

Embodiments of the invention are directed to addressing the aboveproblems, and other problems, individually and collectively.

SUMMARY

Apparatuses, methods, and systems pertaining to the verification ofportable consumer devices are disclosed.

One exemplary embodiment of the invention is directed to a verificationtoken for obtaining a device verification value for a portable consumerdevice. The exemplary verification token comprises a peripheralinterface adapted to communicatively couple to a peripheral interface ofa computer, a reader adapted to read identification information fromportable consumer devices, a computer-readable medium, a data processorelectrically coupled to the peripheral interface of the verificationtoken, the reader, and the computer-readable medium, and code embodiedon the computer-readable medium that directs the data processor toperform various actions. In exemplary embodiments, the verificationtoken is located within a housing of the computer or a peripheral deviceelectrically coupled to the computer. In an exemplary implementation,the verification token comprises code that directs the data processor tocommunicate with a computer by way of the verification token'speripheral interface and to gain access to a networking facility of thecomputer, code that directs the data processor to receive identificationinformation read from a portable consumer device by the reader, codethat directs the data processor to transmit at least a portion of thereceived identification information to an entity that can provide adevice verification value (e.g., validation entity or gateway) by way ofthe networking facility of the computer, and code that directs the dataprocessor to receive, after transmitting said identificationinformation, a device verification value from the entity by way of thenetworking facility of the computer. The verification token may send theidentification information to the computer in a number of forms,including: (1) unaltered form (“clear form”), (2) encrypted form, (3)hashed formed (e.g., encoded), (4) signed form, (5) or any combinationof these forms. These forms may be generated by the portable consumerdevice, the verification token, the computer, or any combinationthereof. In addition, the verification token and the entity (e.g.,validation entity or gateway) may perform a mutual authenticationprocess before the verification token sends the identificationinformation. As used in the claims, the term “entity that can provide adevice verification value” encompasses a validation entity, a gateway,or any combination thereof.

Another exemplary embodiment of the invention is directed to averification token for obtaining a device verification value for aportable consumer device. The exemplary verification token comprises aperipheral interface adapted to communicatively couple to a peripheralinterface of a computer, a reader adapted to read identificationinformation from portable consumer devices, a computer-readable medium,a data processor electrically coupled to the peripheral interface of theverification token, the reader, and the computer-readable medium, andcode embodied on the computer-readable medium that directs the dataprocessor to perform various actions. In an exemplary implementation,the verification token comprises code that directs the data processor tocommunicate with a computer by way of the verification token'speripheral interface and to access to a networking facility of thecomputer, code that directs the data processor to establishcommunications, using the networking facility of the computer, with anentity that can provide a device verification value (e.g., a validationentity, or a gateway in communication a validation entity), code thatdirects the data processor to receive identification information readfrom a portable consumer device by the reader, code that directs thedata processor to transmit at least a portion of the receivedidentification information to the entity (e.g., validation entity orgateway) by way of the networking facility of the computer, and codethat directs the data processor to receive, after transmitting saididentification information, a device verification value from the entityby way of the networking facility of the computer. The verificationtoken may send the identification information to the computer in theforms indicated above. In exemplary embodiments, the verification tokenis located within a housing of the computer or a peripheral deviceelectrically coupled to the computer.

In some implementations of these exemplary embodiments, the above codesand identification information are stored independently of the computerand are secure from programs (including spyware and other maliciousprograms) running on the computer. In this implementation, theidentification information is put in secure form (e.g., encrypted,hashed, signed, or combination thereof) by the verification token beforethe information is provided to the computer. Accordingly, securing theinformation is not dependent upon the security of the computer.Symmetric or asymmetric keys may be used for encryption and signing. Thekeys for a verification token may be unique with respect to otherverification tokens. Keys, and particularly symmetric keys, may be basedupon a uniquely assigned serial number for the verification token, whichthe token communicates to the validation entity and/or gateway. Both theverification token and the validation entity and/or gateway may have ashared secret on how to derive a key from the serial number, such as bymanipulating and/or replacing selected digits of the serial number. Anumber of keys may be derived from the unique serial number usingrespective shared secrets. Thus, the challenge and response messagesused in a mutual authentication process may be signed using respectivekeys derived from the serial number.

Another exemplary embodiment of the invention is directed to a devicefor obtaining a device verification value for a portable consumerdevice. The exemplary device comprises: a housing, a first processordisposed within the housing, a first memory unit disposed within thehousing, an input-output controller coupled to the first processor, anda verification token disposed within the housing and communicativelycoupled to the input-output controller. The verification token comprisesa second processor separate from the first processor, a second memoryunit separate from the first memory unit, and a card reader coupled tothe second processor. The verification token receives identificationinformation from a portable consumer device by way of the card reader,transmits at least a portion of the received identification informationto an entity that can provide a device verification value by way of thefirst processor, and receives a device verification value from theentity by way of the first processor.

Another exemplary embodiment of the invention is directed to a computerperipheral device for obtaining a device verification value for aportable consumer device. The exemplary computer peripheral devicecomprises: a housing, a controller for one of a monitor, keyboard, orcomputer mouse, the controller being disposed in the housing, and averification token disposed in the housing and having a card reader. Theverification token receives identification information from a portableconsumer device by way of the card reader, transmits at least a portionof the received identification information to an entity that can providea device, and receives a device verification value from the entity.

Another exemplary embodiment of the invention is directed to a method ofobtaining a device verification value for a portable consumer device.The exemplary method comprises establishing a communications linkbetween a verification token and a computer, the computer having anetworking facility; reading identification information from a portableconsumer device into the verification token; transmitting the readidentification information from the verification token to an entity thatcan provide a device verification value (e.g., a validation entityand/or gateway) through the networking facility of the computer; andafter transmitting the identification information, receiving, at theverification token, a device verification value from the entity (e.g.,validation entity and/or gateway) by way of the networking facility ofthe computer. The identification information may be transmitted from thetoken to the computer in a number of forms, including: (1) unalteredform (“clear form”), (2) encrypted form, (3) hashed formed (e.g.,encoded), (4) signed form, (5) or any combination of these forms. Theseforms may be generated by the portable consumer device, the verificationtoken, the computer, or any combination thereof. In addition, the methodmay include causing the verification token to authenticate thevalidation entity and/or gateway, such as through a mutualauthentication process, before transmitting the identificationinformation to the validation entity and/or gateway.

Another exemplary embodiment of the invention is directed to a method ofobtaining a device verification value for a portable consumer device.The exemplary method comprises establishing a communications linkbetween a verification token and a computer, the computer having anetworking facility; establishing a communications session between theverification token and an entity that can provide a device verificationvalue (e.g., a validation entity and/or gateway) using a networkingfacility of the computer; reading identification information from aportable consumer device into the verification token; transmitting theread identification information from the verification token to theentity (e.g., validation entity and/or gateway) through thecommunications session; and after transmitting the identificationinformation, receiving, at the verification token, a device verificationvalue from the entity (e.g., validation entity and/or gateway) by way ofthe communications session. The identification information may betransmitted from the token to the computer in any of the above indicatedforms. In addition, the method may include causing the verificationtoken to authenticate the validation entity and/or gateway, such asthrough a mutual authentication process, before transmitting theidentification information to the validation entity and/or gateway.

Another exemplary embodiment of the invention is directed to a method ofusing a verification token. The exemplary method comprises coupling averification token to a computer using a peripheral interface of thecomputer, the computer having a networking facility, the verificationtoken comprising a peripheral interface adapted to communicativelycouple to a peripheral interface of a computer, a reader adapted to readidentification information from portable consumer devices, acomputer-readable medium, and a data processor, the token beingconfigured to read identification information of a portable consumerdevice using the reader and to obtain a device verification valuetherefor from a first entity (e.g., a validation entity and/or gateway)using the networking facility of the computer. The method furthercomprises presenting a portable consumer device to the reader of theverification token to obtain a device verification value for theportable consumer device, and providing the obtained device verificationvalue to a second entity. The second entity may be involved with atransaction between itself and a user of the verification token.

Another exemplary embodiment of the invention is directed to avalidation entity that provides device verification values toverification tokens. The exemplary validation entity comprises acomputer-readable medium, a data processor electrically coupled to thecomputer-readable medium, and code embodied on the computer-readablemedium that directs the data processor to perform various actions. Theexemplary validation entity further comprises: code that directs a dataprocessor to receive a request for a device verification value for aportable consumer device associated with a user, the request comprisingidentification information pertaining to the portable consumer device;code that directs the data processor to apply at least one validationtest pertaining to the received request; and code that directs the dataprocessor to send, if the at least one validation test is passed, adevice verification value to a verification token associated with theuser or to an entity configured to forward the device verification valueto the token.

Another exemplary embodiment of the invention is directed to a computerprogram product that provides device verification values. The exemplaryproduct comprises: code that directs a data processor to receive arequest for a device verification value for a portable consumer deviceassociated with a user, the request comprising identificationinformation pertaining to the portable consumer device; code thatdirects the data processor to apply at least one validation testpertaining to the received request; and code that directs the dataprocessor to send, if the at least one validation test is passed, adevice verification value to a verification token associated with theuser or to an entity configured to forward the device verification valueto the token.

Another exemplary embodiment of the invention is directed to avalidation entity that provides device verification values toverification tokens. The exemplary validation entity comprises acomputer-readable medium, a data processor electrically coupled to thecomputer-readable medium, and code embodied on the computer-readablemedium that directs the data processor to perform various actions. Theexemplary validation entity further comprises code that directs the dataprocessor to communicate with a verification token over a communicationsnetwork with a computer disposed between the verification token and thecommunications network, the verification token being communicativelycoupled to the computer by way of a peripheral interface of the computerand configured to access a networking facility of the computer, theverification token being configured to read a portable consumer devicefor identification information, and to cause at least a portion of theidentification information to be sent in encrypted form to thevalidation entity using the networking facility of the computer. Theexemplary validation entity further comprises code that directs the dataprocessor to receive encrypted identification information sent by theverification token, code that directs the data processor to decrypt theencrypted identification information, code that directs the dataprocessor the data processor to apply at least one validation test tothe decrypted identification information, and code that directs the dataprocessor to transmit, if the at least one validation test is passed, adevice verification value to the verification token. Further embodimentsmay include transmitting the device verification value to a paymentprocessing network.

Another exemplary embodiment of the invention is directed to avalidation entity that provides device verification values toverification tokens. The exemplary validation entity comprises acomputer-readable medium, a data processor electrically coupled to thecomputer-readable medium, and code embodied on the computer-readablemedium that directs the data processor to perform various actions. Theexemplary validation entity further comprises code that directs the dataprocessor to communicate with a verification token over a communicationsnetwork with a computer disposed between the verification token and thecommunications network, the verification token being communicativelycoupled to the computer by way of a peripheral interface of the computerand configured to access a networking facility of the computer, theverification token being configured to read a portable consumer devicefor identification information, and to cause at least a portion of theidentification information to be sent to the validation entity using thenetworking facility of the computer. The verification token also beingconfigured to cause a serial number and an encrypted message to be sentto the validation entity using the networking facility of the computer.The message is encrypted by an encryption key, with the serial numberand encryption key being uniquely assigned to the verification token.The exemplary validation entity further comprises code that directs thedata processor to receive encrypted the serial number, the encryptedmessage, and identification information sent by the verification token,code that directs the data processor to apply at least one validationtest to the serial number and encrypted message, and code that directsthe data processor to transmit, if a selected number of the one or morevalidation tests are passed, a device verification value to theverification token. Further embodiments may include transmitting thedevice verification value to a payment processing network.

In each of the embodiments described above, and in each of theembodiments described below, the communications between the computer andthe validation entity may be facilitated by, and/or conveyed through, agateway (e.g., a proxy server, server entity, etc.) that is disposedbetween the computer and the validation entity. The gateway may act asan intermediary between a plurality of verification tokens and theirassociated computers on the one side, and a plurality of validationentities on the other side. The gateway may receive one or more initialcommunications from a verification token (via a computer incommunication with the token), and may determine from information in theone or more initial communications an appropriate one of the validationentities to use to fulfill the token's request for a device verificationvalue. For example, each verification token may be configured to operatewith portable consumer devices issued by many different issuing banks orother such entities, and one or more of the validation entities may beconfigured to process requests from portable consumer devices issued byrespective issuing banks or other such entities. The gateway maydetermine an appropriate one of validation entities to use based uponthe identification information that the token read from a portableconsumer device and sent to the gateway in an initial communication. Inone implementation, the gateway redirects the token to the determinedappropriate validation entity, with further communications occurringdirectly between the verification token and the appropriate validationentity. In another implementation, the communications between theverification token and the appropriate validation entity may be conveyedthrough the gateway (after the gateway has initially determined theidentity of the appropriate validation entity based upon one or moreinitial communications with the token). This latter implementation maycomprise relatively simple passing through of communications between thetoken and the appropriate validation entity with minimal processing bythe gateway, or may comprise having the gateway virtually present itselfas the appropriate validation entity to the verification token. Suchvirtual presentation may involve the gateway decrypting each messagefrom the verification token, communicating with the appropriatevalidation entity to formulate a response to the token's message, andencrypting and sending a response message to the verification token. Thegateway may also conduct one or more validation tests on behalf of theappropriate validation entity, particularly those related to validatingthe verification token. In this case, the gateway does not need to sendto the appropriate validation entity those communications it receivesfrom the token that pertain to validation tests that the gateway ishandling. The gateway may be associated with, or operated by, a paymentprocessing network.

Another exemplary embodiment of the invention is directed to a method ofproviding a device verification value. The exemplary method comprises:receiving, at a server, a request for a device verification value for aportable consumer device associated with a user, the request andcomprising identification information pertaining to the portableconsumer device; applying at least one validation test pertaining to thereceived request; and sending, if the at least one validation test ispassed, a device verification value to a verification token associatedwith the user or to an entity configured to forward the deviceverification value to the token.

Another exemplary embodiment of the invention is directed to a method ofvalidating a portable consumer device presented to a verification token.The exemplary method comprises communicating with a verification tokenover a communications network with a computer disposed between theverification token and the communications network, the verificationtoken being communicatively coupled to the computer by way of aperipheral interface of the computer and configured to access anetworking facility of the computer. The verification token isconfigured to read a portable consumer device for identificationinformation, and to send the identification information in encryptedform to the validation entity using the networking facility of thecomputer. The method further comprises decrypting identificationinformation received from the verification token, and applying one ormore validation tests to the decrypted identification information. Themethod further comprises transmitting, if a selected number of the oneor more validation tests are passed, a device verification value to thetoken. Further embodiments may include transmitting the deviceverification value to a payment processing network.

Another exemplary embodiment of the invention is directed to a method ofvalidating a portable consumer device presented to a verification token.The exemplary method comprises communicating with a verification tokenover a communications network with a computer disposed between theverification token and the communications network, the verificationtoken being communicatively coupled to the computer by way of aperipheral interface of the computer and configured to access anetworking facility of the computer. The verification token isconfigured to read a portable consumer device for identificationinformation, and to send the identification information to thevalidation entity using the networking facility of the computer. Theverification token is also configured to send a serial number and amessage encrypted by an encryption key to the validation entity, withthe serial number and encryption key being uniquely assigned to theverification token. The method further comprises receiving the serialnumber, encrypted message, and identification information from theverification token, and applying one or more validation tests to theserial number and encrypted message. The method further comprisestransmitting, if a selected number of the one or more validation testsare passed, a device verification value to the token. Furtherembodiments may include transmitting the device verification value to apayment processing network.

Another exemplary embodiment of the invention is directed to a methodcomprising reading identification information from a portable consumerdevice into a verification token temporarily coupled to a computerthrough a peripheral interface; establishing communications between averification token and the computer, the computer having a networkingfacility; and establishing communications between the verification tokenand a validation entity using the networking facility of the computer.

The verification token may be detachable coupled to the computer. Thecommunications between the verification token and the validation entitymay comprise a communications session.

To reiterate, the communications between the computer and the validationentity in each of the above embodiment may be conveyed through a serverdisposed between the computer and the validation entity, as describedabove.

Further details regarding embodiments of the invention are providedbelow in the Detailed Description with reference to the Figures.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates some exemplary embodiments of the invention.

FIG. 2 illustrates an exemplary method embodiment that can be used by averification token.

FIG. 3 illustrates an exemplary method embodiment that can be used by auser of a verification token.

FIG. 4 illustrates an exemplary method embodiment that can be used by avalidation entity.

FIG. 5 illustrates an exemplary implementation of a computer-readablememory that can be used by a verification token.

FIG. 6 illustrates a verification token and computer using USBconnectors in the peripheral interfaces.

FIG. 7 illustrates an exemplary identification information that can besent by a verification token and used by a validation entity.

FIGS. 8-15 illustrate various exemplary embodiments of a verificationtoken.

FIG. 16 illustrates additional exemplary embodiments of the invention.

DETAILED DESCRIPTION

Embodiments disclosed herein pertain to the verification of portableconsumer devices. A portable consumer device comprises a device thatholds identification information pertaining to an account held by a userwith another entity, which is typically an entity that holds, extends,or credits items of value to the user (e.g., monetary funds, credits,debts, etc.). Portable consumer devices encompass credit cards, chargecards, debit cards, bank cards, prepaid cards, access cards, securitycards, and other cards that identify an account held by a user withanother entity. The cards are capable of existing in both passive forms(e.g., card with a magnetic stripe) and active forms (e.g., integratedcircuit cards, smartcards), and further encompass portable electronicdevices that, in whole or in part, function as such cards. Such portableelectronic devices can include memory cards, account tokens, fobs,stickers, cellular telephones (including near-field communicationsphone), keychain devices (such as the Speedpass™ commercially availablefrom Exxon-Mobil Corp.), personal digital assistants, other mobileelectronic devices, transponders, smart media, and pagers.

The identification information held by (e.g., embodied on) a consumerportable device comprises at least an account number, and preferably atleast one of the following: a digital fingerprint of a magnetic stripeof the portable consumer device, or a variable datum that varies eachtime the portable consumer device is read for its identificationinformation, as illustrated in FIG. 7. The magnetic stripe carries atleast the account number of the device. The account number identifiesthe consumer account within at least one payment processing network, andmay comprise a primary account number (PAN); it may also comprisealphanumeric characters. The digital fingerprint of the magnetic stripeis representative of the distribution of magnetic particles that formthe magnetic stripe, and is generated by a specialized card reader thatsamples the distribution of magnetic particles when the card is swiped.The variable datum typically comprises number characters, but maycomprise alphanumeric characters. The values of the variable datum varyin a way that is known to both the portable consumer device and anauthorization entity, the latter of which may be an issuing bank or apayment processing network. The variable datum encompasses the dynamicCVV (“dCVV”) and CVC3 card verification values generated by smartcards(both the contact and contactless forms), as well as cryptogramsgenerated by many smartcards (e.g., cryptogram 17). The datum values maybe pre-stored in a computer-readable medium of the device and in acomputer-readable medium of the authorization entity, or may begenerated by each of the device and the entity as needed (e.g.,“generated on the fly”) using a confidential algorithm known to thedevice and the entity or by a known algorithm that uses confidentialkeys or confidential information. The variable datum may comprise, ormay be accompanied by, a counter value that indicates the number oftimes the portable consumer device has generated the variable datum; thecounter value may assist the authorization entity in retrieving thevariable datum from the entity's computer-readable medium, or ingenerating the variable datum from the algorithm. However, a countervalue is not necessary, and the authorization entity may deduce thenumber of times the device has generated the variable datum from thehistory of authorization requests made for the device, or an algorithmthat does not require a counter may be used.

The identification information may further comprise the name of theaccount holder (e.g., the user), the expiration date of the card,service codes, and discretionary data. As an example, the identificationinformation may include the conventional “payment data” stored on thetracks of the magnetic stripe of a conventional credit card (e.g., Track1, Track 2, and/or Track 3).

The identification information of a portable consumer device is read bya reader, which is an electrical component that can read theidentification information from a portable consumer device and providethe identification information to another electrical component. A readermay comprise one or more of the following: a magnetic stripe reader(which may include fingerprint sampling circuitry), a card contactreader, and a contactless reader, the latter of which is commonly knownas an RFID reader (RFID being an acronym for radio-frequencyidentification). A reader for reading fingerprints of magnetic stripesmay include a security module that comprises a proprietary algorithmthat generates a digital fingerprint from the sampled fingerprint dataand that encrypts the digital fingerprint with a nonce word using anencryption key. Readers are predominantly found at point-of-saleslocations of merchants.

A typical credit card transaction flow using a portable consumer deviceat a point-of-sales location is described next. The user's portableconsumer device is provided to the user by or on behalf of an issuingbank. The issuing bank extends credit to the user, represents the userin credit card transactions, and pays merchants for the purchases madeby the user. A user presents his or her portable consumer device to amerchant at a point-of-sales location to pay for an item or service. Themerchant uses a reader to read the user's portable consumer device, andsends the identification information read from the device along withmerchant's information and the transaction amount to an acquiring bank.The merchant may also read the portable consumer device for the printedcard verification value (e.g., the CVV value printed on the backs ofmany credit cards), and may send this along as part of the transactioninformation sent to the acquiring bank. The acquiring bank represents,and vouches for, the merchant in credit card transactions. The acquiringbank forwards the transaction information to a payment processingnetwork, such as VisaNet™, for authorization. A payment processingnetwork generally encompasses a collection of one or more dataprocessing server computers, subsystems, networks, and operations usedto support and deliver one or more of the following: authorizationservices, exception file services, and clearing and settlement services.Payment processing networks encompass bank processing networks,credit-card payment processing network, etc. An exemplary paymentprocessing network may include VisaNet™. Exemplary payment processingnetworks are able to process one or more of the following: credit-cardtransactions, debit-card transactions, and other types of commercialtransactions. A payment processing network may use any suitable wired orwireless network, including the Internet, to communicate with acquiringbanks and issuing banks.

Prior to the occurrence of a credit-card transaction, the paymentprocessing network has established a protocol with each issuing bank onhow the bank's transactions are to be authorized. In some cases, such aswhen the transaction amount is below a threshold value, the paymentprocessing network will authorize the transaction based on informationthat it has about the user's account without consulting the issuingbank, and will accept the liability if the transaction turns out to befraudulent. In other cases, such as when the transaction amount is abovea threshold value, the payment processing network will forward thetransaction information on to the issuing bank for verification andauthorization. As part of the authorization process, the payment networkor the issuing bank may verify the digital fingerprint or the varyingdatum provided by the portable consumer device. The digital fingerprintis stored at the issuing bank, and may be securely provided to thepayment processing network by the issuing bank for storage andsubsequent use. The algorithm for generating the varying datum is storedat the issuing bank, and may be securely provided to the paymentprocessing network for storage and subsequent use. As also part of theauthorization process, the payment network or the issuing bank mayverify the printed card verification value (e.g., CVV), which is storedat the issuing bank, and may be securely provided by the issuing bank tothe payment processing network for storage and subsequent use. Thedegree to which the payment processing network is involved in theverification of the consumer portable device and the authorization ofthe transaction is typically configured according to the wishes of theissuing bank. Once the transaction is authorized, the payment processingnetwork sends an authorization indication to the acquiring bank, whichsends the authorization indication on to the merchant. In order toreduce fraud, merchants are not allowed to store digital fingerprints,variable datum, and printed card verification values (CVVs) for morethan 24 hours.

In the credit card industry, the authorization indication takes the formof an authorization code, which is five or six alphanumeric characters,by convention. It serves as proof to the merchant and the card holderthat the issuing bank or payment processing network has authorized thetransaction, and may be used by the merchant or the card holder as proofof authorization if the issuing bank later disputes the transaction,such as during settlement. The authorization code is not the same as thecard verification value (or the dCVV2 value described below) since itdoes not have the same purpose as the card verification value, which isto serve as proof that the card was presented to the merchant when thetransaction was conducted, and cannot be entered into the CVV field of amerchant POS terminal or merchant website (which only accepts 3 or 4numeric digits).

When a user wishes to make an online purchase with a merchant over theInternet, the user types in the credit card account number, cardholdername, expiration date, and the printed card verification value intorespective fields on the merchant's checkout page. In this case, thecard's magnetic fingerprint or the card's variable datum is not used inthe transaction, and they are not available to the payment processingnetwork or the issuing bank to aid in verifying that the card wasactually present during the transaction. Accordingly, there is a greaterrisk of fraud with such online purchases. For example, a store clerk cancopy down the account information and printed verification value duringa transaction at a point-of-sales location, and can later use the copiedinformation to make an online purchase. As another example, a hacker caninstall spyware on the user's computer to intercept the accountinformation and printed verification value, and use it to makefraudulent purchases at other online merchants. Other avenues ofpotential fraud exist. Embodiments of the invention are directed tomitigating these types of fraudulent activity.

FIG. 1 illustrates some exemplary embodiments of the invention in thecontext of an online purchase. A general overview description of theembodiments and components shown in the figure will be given, followedby more detailed descriptions of the components. Shown in the figure areicons for a user 1, the user's portable consumer device 5, the user'scommunication device 7 (such as a cell phone), the user's computer 10,the merchant's website 20, and a first communications network 31 thatenables the user's computer and the merchant's website to communicatewith one another. The first communications network 31 may include theInternet, a telecommunications network (e.g., a wireless network, cellphone network, a telephone network, a cable network, or any combinationthereof), a wide area network (WAN), a local area network (LAN), a homerouter or gateway coupled to one of the above networks, or anycombination of the above. Also shown in FIG. 1 is an acquiring bank 50for the merchant, an issuing bank 60 for the portable consumer device 5,a payment processing network 70, and a second communications network 32that enables the payment processing network 70 to communicate with eachof the banks 50 and 60. The second communications network 32 maycomprise the Internet (and therefore may overlap and share facilitieswith the first communications network 31), or may comprise one or moreprivate networks, or combination of one or more private networks withthe Internet. A private network may comprise a telecommunicationsnetwork, a wide area network (WAN), a local area network (LAN), or anycombination thereof. In some instances, the first and secondcommunications networks 31 and 32 may be the same (such as a networkusing the Internet as the backbone). A communications network generallycomprises a network of one or more communications links and two or morenodes that pass messages from one part of the network to another part.Each node comprises one or more pieces of electrical machinery, and eachlink may comprise one or more of the following: optical fibers, opticallinks, radio links, electrical wires. The components described so farare, for the most part, conventional and arranged in a conventionalmanner.

FIG. 1 illustrates a verification token 40 according to one embodimentof the invention, and a validation entity 80 according to anotherembodiment of the invention. These components, and the interactionsbetween them and between other components shown in FIG. 1 are novel, anddo not form part of the prior art. Verification token 40 has a reader 44to read portable consumer device 5, and a peripheral interface 46adapted to communicatively couple to a peripheral interface 16 ofcomputer 10. Reader 46 may comprise one or more of the following: amagnetic stripe reader (which may include fingerprint sampling circuitryand security module), a card contact reader, and a contactless reader,the latter of which is commonly known as an RFID reader. Verificationtoken 40 is configured to communicate to validation entity 80 by way ofa networking facility 14 of computer 10. After user 1 fills a purchasecart on merchant website 20, the user may bring up the merchant'scheckout page to provide the user's payment information and commit tothe purchase. At this point, user 1 may present his or her portableconsumer device 5 to a card reader 44 of verification token 40 toprovide the device's identification information (an example of which isillustrate in FIG. 7). The verification token 40 reads theidentification information from the user's portable consumer device 5,and sends at least a portion of the identification information in asecure manner (e.g., in an encrypted form) to validation entity 80 torequest a device verification value for the portable consumer device 5.For the sake of clarity, and without loss of generality, we can refer tothe device verification value provided by validation entity 80 as a“dCVV2” value, so as to distinguish it from the dynamic “CVC3” or “dCVV”values generated by smartcards, which were described above, and from theCVV field found on the merchant's checkout page. Validation entity 80applies one or more validation tests to verification token 40 and/or theidentification information to obtain a level of confidence that theportable consumer device 5 was actually presented to verification token40 to request the dCVV2 value. When the one or more validation tests arepassed, and preferably with no tests being failed, validation entity 80sends a dCVV2 value to verification token 40.

In cases where the user's portable consumer device 5 generates acryptogram (e.g., cryptogram 17), card reader 44 provides the user'sdevice 5 with “dummy” transaction information that is known to bothtoken 40 and validation entity 80. The dummy transaction information mayinclude a static transaction amount and a static merchant name,depending upon the type of cryptogram to be generated. The dummytransaction information may be different for each token 40. The user'sdevice 5 uses the transaction information to generate the cryptogram.The user's device typically has a counter value, often called theApplication Transaction Counter (ATC), which is included in thecryptogram computation, and which is incremented with each transaction.The counter reduces the chances of a fraudster guessing the cryptogramvalue. In some cases, user's device 5 may need a PIN to activate thecomputation of the cryptogram. For this, token 40 may display a pop-upwindow on the user's computer 10 that requests the entry of a PIN by theuser, and token 40 may provide the pin to the user's device 5 along withthe request for the cryptogram.

A first validation test that validation entity 80 may apply pertains toverifying that verification token 40 is authentic. For this,verification token 40 may send its serial number to validation entity80, along with a message encrypted by an encryption key, with themessage and encryption key being known to token 40 and entity 80 (butnot the general public), and with the encryption key further beinguniquely assigned to the token's serial number (uniquely assigned to thetoken). Validation entity 80 has a database of serial numbers andcorresponding uniquely assigned encryption keys, and can validate thatverification token 40 has sent the correct message for the serialnumber. Validation of the correct message serves to authenticateverification token 40. If the first validation test is failed,validation entity 80 may record the serial number of the failed token 40and the source IP address from which the failed token 40 made therequest in a database (such as a database 86 described below). A secondvalidation test that validation entity 80 may apply pertains toverifying that verification token 40 has not been involved in fraudulenttransactions. For this, validation entity 80 may also have a databasethat tracks the serial numbers of verification tokens that have beenused in fraudulent activities, and may check the serial number ofverification token 40 against this database. The second validation testmay further comprise checking the token serial number and/or the IPaddress from which an incoming dCVV2 request was originated (the sourceIP address of the message) against the previously-described databasethat stores token serial numbers and IP addresses associated withrequests that have failed the first validation test. If a token serialnumber or IP address is found in this database, the second validationtest may be deemed to have been failed. Checking the token serialnumbers and/or the IP addresses in this way prevents replay attacks byfraudsters. It may be appreciated that the database of serial numbers oftokens that failed the first validation test may be combined with thedatabase of serial numbers of tokens involved in fraudulent activities.This combined database, as well as the two other databases, may begenerically termed as a database of serial numbers of suspicious tokens.If the first and second validation tests are passed (e.g., encryptedserial number matches value in database, and no fraudulent use and/orsuspicious activity by the token), validation entity 80 may send a dCVV2value to verification token 40, or may apply additional validation testsbefore sending a dCVV2 value. Such an additional validation testpertains to checking the digital fingerprint or variable datum ofportable consumer device 5. Validation entity 80 may have a storedrecord of the digital fingerprint of portable consumer device 5 or thealgorithm for generating the variable datum of device 5, and canvalidate the received identification information by comparing thefingerprint or variable datum provided in the received information withthe fingerprint or variable datum that it obtains from its stored recordfor device 5. If the additional validation test is passed, validationentity 80 may send a dCVV2 value to verification token 40. Theadditional validation test may be performed in addition to, or insteadof, the previously described validation tests.

The dCVV2 value provided by validation entity 80 comprises a variabledatum (e.g., a multi-digit number), and is used by the user to completethe purchase transaction. Verification token 40 may display the dCVV2value to the user so that the user may enter the dCVV2 value into CVVfield of the checkout page of the merchant's website, or verificationtoken 40 may enter the dCVV2 value directly into the CCV field of themerchant's checkout page. After the dCVV2 value has been entered intothe CVV field, the user may complete the purchase. This form of thedCVV2 value enables it to work within existing payment processingsystems and flows. The merchant's website 20 then uses the dCVV2 valuefor the CVV in its authorization request for the purchase. Theauthorization request is sent to acquiring bank 50, which then forwardsit to payment processing network 70 for authorization. Through aseparate channel, validation entity 80 may send the dCVV2 value topayment processing network 70 and/or issuing bank 60, along with theaccount information (e.g., account number), so that the merchant'sauthorization request can be processed. This serves to notify paymentprocessing network 70 and/or issuing bank 60 that a dCVV2 value forportable consumer device 5 was requested and provided to a merchant, andto expect the merchant to provide the dCVV2 value in an authorizationrequest for the account.

Payment processing network 70 can compare incoming authorizationrequests from merchants (such as forwarded by acquiring banks) againstthe information it receives from validation entity 80 (such as bylooking at account numbers), and can match (e.g., correlate) incomingauthorization requests with validation information sent by validationentity 80. If a match is found, payment processing network 70 has a highdegree of assurance that consumer portable device 5 was in thepossession of user 1 at the time the purchase transaction was made. Thisprovides a greater degree of assurance in comparison to the reliance onCCV values printed on the backs of credit cards. Payment processingnetwork 70 and issuing bank 60 can then undertake the other actions thatthey perform to authorize the transaction, such as checking whether themerchant 20 is in good standing, and checking the account limit of user1 to ensure that there are sufficient funds to cover the purchase amountof the transaction. In this case, payment processing network 70 does notneed to validate the digital fingerprint and/or the variable datum ofthe portable consumer device 5, if those actions have been done byvalidation entity 80. (Payment processing network 70 may, however,perform those validation actions for merchant point-of-salestransactions.)

As a further feature, which is useful when multiple devices 5 have beenallocated under one account number (e.g., multiple cards under one PANfor a household), the identification information that token 40 collectsand provides to validation entity 80 may include a device identifieralone with the account number. This device identifier uniquelyidentifies one of the devices allocated under the account number.Provision entity 80 may further use the device identifier to obtaindifferent dCVV2 values for the different devices allocated under theaccount number. As a further feature, validation entity 80 may send totoken 40 shipping address information and/or billing address informationof the user that has been previously associated to the device, and token40 may fill this information into corresponding fields on the merchantcheckout page.

Embodiments and components shown in FIG. 1 are now described in greaterdetail. The user's computer 10 may comprise a desktop computer, a laptopcomputer, or any portable electronic device that has a networkingfacility and a peripheral interface for communicating with one or moreperipheral devices. Computer 10 has one or more processors 11, atangible computer-readable medium 12 coupled to processor(s) 11 thatstores instruction codes (software) that direct processor(s) 11 and thatstores data used by processor(s) 11, and a user interface 13 coupled toprocessor(s) 11. Networking facility 14 and peripheral interface 16,which were previously described above, are also coupled to processor(s)11, with networking facility 14 also being coupled to firstcommunications network 31. User interface 13 comprises one or more videooutput devices (e.g., displays, screens) and one or more input devices(e.g., keyboard, mouse, trackball, etc.) for user 1 to receiveinformation from computer 10 and to provide input to computer 10.Computer-readable medium 12 may comprise a combination of semiconductormemory and non-volatile storage, such as one or more disk drives and/ornon-volatile memory. Computer-readable medium 12 stores an operatingsystem for computer 10, which enables processes and applications to berun by processor(s) 11. The operating system provides services to theseprocesses and applications, and enables these processes and applicationsto access components of user interface 13, portions of computer-readablemedium 12, networking facility 14, peripheral interface 16, and othercomponents of computer 10. The operating system may be complex and fullfeatured, such as found on desk-top computers, or simplified, such asfound on cell phones, PDAs, and many other types of portable electronicdevices.

Networking facility 14 of computer 10 may comprise software and hardwarethat enable a process running on computer 10 to communicate with acommunications network, such as network 31, to send and receivemessages, data, and the like to one or more entities coupled to thecommunications network. The hardware of facility 14 may comprisededicated hardware separate from processor(s) 11, or the shared use ofprocessor(s) 11, or a combination thereof. The software of facility 14may comprise firmware, software stored in computer-readable medium 12 oranother computer-readable medium, portions of the operating system, or acombination of any of the preceding items. Networking facility 14 ispreferably a non-exclusive resource, allowing access to thecommunications network by other processes and applications being run bycomputer 10. Peripheral interface 16 of computer 10 comprises one ormore wired and/or wireless connections that enable a peripheral device(e.g., a device that is separate from the computer's CPU and memory butwhich can be located inside or outside of the computer's housing) tocommunicate with the computer. Conventional wired connections includeuniversal serial bus (USB) connectors (“USB ports”), serial ports,parallel ports, and PCMCIA ports. Conventional wireless connectionsinclude infra-red (IR) base stations and Bluetooth™ base stations thatare built into computer 10 or that are coupled to a peripheral interfaceof computer 10.

In addition to reader 44 and peripheral interface 46 (described above),verification token 40 further comprises a processor 41, a tangiblecomputer-readable medium 42 coupled to processor 41 holding data andcodes that direct the operation of processor 41, a security module 43coupled to processor 41 and adapted to securely store one or moreencryption keys and to encrypt and decrypt data for token 40, a reader44 coupled to processor 41 and adapted to read portable consumer devices5, and a peripheral interface 46 coupled to processor 41 and adapted tocommunicate to computer 10 by way of peripheral interface 16. Processor41 may comprise a conventional microprocessor, and computer-readablemedium 42 may comprise a combination of semiconductor memory andnon-volatile storage, such non-volatile memory. FIG. 5 illustrates anexemplary implementation of computer-readable medium 42, which includethe storage of several datum elements (described in greater detailbelow), processor codes that direct the operation of processor 41, andprocessor memory which processor 41 may use in carrying out its tasks.Referring back to FIG. 1, security module 43 may comprise encryption anddecryption circuitry (which may include one or more processors), and maycomprise one or more encryption keys stored in a secured memory.Security module 43 may also include firewall security circuitry thatprotects verification token 40 from attacks from hackers conductedthrough peripheral interface 16. Reader 44 may comprise a conventionreader, as described above. Peripheral interface 46 may comprise a wiredor wireless connection adapted to communicate with peripheral interface16 of computer 10. As indicated above, conventional wired connectionsinclude universal serial bus connectors (“USB ports”), serial ports,parallel ports, and PCMCIA ports. Conventional wireless connections mayinclude infra-red and Bluetooth™ remote stations. When using aconventional wired connection with peripheral interface 46, verificationtoken 40 may be detachably coupled to computer 10 at peripheralinterface 16, such as at a USB port connector. FIG. 6 illustrates anexemplary verification token 40-1 with a USB port connector (male type)as part of its peripheral interface 46-1. Also illustrate in FIG. 6 iscomputer 10, its peripheral interface 16-1 having a USB port connector(female type) to which USB connector 46-1 is plugged into, the userinterface 13 of computer (e.g., screen and keyboard), the user'sportable consumer device 5 (RFID-type card), user 1, and thepresentation of a dCVV2 value on user interface 13. Token 40 may furtherinclude a visual indicator, such as a light-emitting diode (LED), thatit lights when it is ready to read a user's device 5, and may furtherinclude an audible indicator, such as a piezoelectric buzzer, thatsounds when token 40 is finished with reading a user's device 5. Thevisual and audible indicators may be operated by the circuitry of reader44. In other implementations, one or more of these indicators may beoperated by processor 41 through I/O commands. Although FIG. 6illustrates an embodiment of verification token 40 as something similarto a USB stick, the token may come in other forms. For example, it maybe piece of hardware or other module installed into a computer, consumerdevice, or other device. Examples of such forms are described belowafter this general description.

Referring back to FIG. 1, verification token 40 further comprisesvarious codes embodied on computer-readable medium 42 that direct dataprocessor 41 to perform respective actions (e.g. processor codes shownin FIG. 5). A first code directs data processor 41 to communicate withcomputer 10 by way of peripheral interface 46 so as to gain accessnetworking facility 14 of computer 10. The first code may comprise codethat directs data processor 41 to send a device driver to computer 10and an instruction to install the device driver in the computer'soperating system, wherein the device driver is a collection ofinstructions to be run by computer 10 that enables computer 10 torecognize the verification token and communicate with the verificationtoken 40, and enables the token's data processor 41 to make functioncalls to various application program interfaces (API's) of thecomputer's operating system, such as those related to networking andaccessing networking facility 14. So called “self-installing” driversare known to the art, and can be used here. They comprise one or morefunction calls to an application programming interface (API) of thecomputer's operating system, such as the device manager's API. The firstcode may be configured to work with a selected operating system, such asWindows or Symbian OS, or may be configured to work with severaloperating systems. In the latter case, the first code may includeseveral device drivers for the various operating systems, andinstructions that query computer 10 for its operating system type andselect (and install) the driver most appropriate for the computer'soperating system. The device drivers may be stored in a section ofcomputer-readable medium 42, as illustrated in the example of FIG. 5.The first code may further include, as an option, instructions thatdirect processor 41 to generate an I/O signal that causes theabove-described visual indicator to be lit in response to processor 41gaining access to networking facility 14 of computer 10.

Referring back to FIG. 1, a second code of verification token 40 directsdata processor 41 to receive identification information read fromportable consumer device 5 by the reader 44. The second code may includecode that directs the data processor 41 to receive a universal resourceidentifier (URID) of a validation entity 80, as read from portableconsumer device 5 by the reader 44. The second code may compriseinstructions that direct processor 41 to contact reader 44 at periodicintervals through an I/O command to determine if the reader has any datafor the processor, and to read the data when data is indicated as beingpresent. The second code may further direct processor 41 to contactreader 44 through an I/O command to clear the data after processor 41has read it, or reader 44 may be configured to clear the data after ithas sensed that processor 41 has read it, or after a period of timegreater than the periodic contact interval used by processor 41. Inanother implementation, reader 44 may be configured to generate aninterrupt signal to processor 41 when data is present, and the secondcode may include instructions that direct processor 41 to respond to theinterrupt signal by reading the data from reader 44 and clearing theinterrupt. The second code may further include, as an option,instructions that direct processor 41 to generate an I/O signal thatcauses the above-described audible indicator to sound in response toprocessor 41 receiving data from reader 44. The above instructions mayinclude conventional I/O instructions that direct the communicationswith reader 44 and the indicators. Different portable consumer device 5may store and provide different URID's to different validation entities80. A uniform resource identifier (URID) may comprise a uniform resourcelocator (URL), an Internet-protocol address (IP-address), or any othertype of identifier that can identify an entity on a communicationsnetwork. If a portable consumer device 5 does not provide a URID tovalidation entity 80, verification token 40 may store a URID to adefault validation entity 80. In some configurations, some verificationtokens 40 may be co-branded with respective issuing banks and only workfor portable consumer devices that are co-branded with the same issuingbanks, and each issuing bank may have its own validation entity 80 withits own URID. In such a configuration, these verification tokens 40 maystore the URIDs to their respective co-branded validation entities 80.Instead of, or in addition to, this configuration, some verificationtokens 40 may be associated with respective payment processing networks70, and each such network may have its own validation entity 80. In sucha configuration, these verification tokens 40 may store the URIDs totheir respective associated validation entities 80. Accordingly, thesecond code of verification token 40 may be further configured to directdata processor 41 to only use a default URID stored by token 40, or touse a default URID if consumer portable device 5 does not provide token40 with a URID to entity 80. As yet another implementation, verificationtoken 40 may include code that directs processor 41 to select one of anumber of URIDs stored in token 40 based on a bank number provided inthe identification information or embedded in the account number. Theabove further direction and codes may be implemented with conventionalI/O instructions, memory access instructions, and CPU logical andcontrol instructions. One or more URIDs to validation entities may bestored in computer-readable memory 42, as illustrated in the exampleshown in FIG. 5.

Referring back to FIG. 1, A third code of verification token 40 directsdata processor 41 to establish communications with validation entity 80using networking facility 14 of computer 10. The operating system ofcomputer 10 comprises one or more software modules and applicationprograms, generically called “network services modules” herein, that canaccess networking facility 14 and set up communications sessions toentities on communications network 31. Such network services modulesinclude Microsoft's Windows Communications Foundation (e.g., .NET 3.0,.NET 4.0, etc.), Apple's CFNetwork Framework, the networking section ofthe Unix and Linux operating system kernels, the OS Services Layer andthe Base Services Layer of the Symbian operating system, Internetbrowsers, and the like. Each of these network services modules isnon-exclusive (e.g., capable of serving more than one processor and morethan one process/application) and provides an application programminginterface (API) to a collection of functions that a processor can accessusing respective function calls. With these API facilities, a collectionof function calls can be readily constructed for a processor to executethat enables the processor to establish a communications channel with anentity on a communications network coupled to networking facility 14,and to exchange messages and data with the entity. The third code ofverification token 40 comprises such a collection of function calls tothe API of a network services module of computer 10, including one ormore function calls that provide the universal resource identifier(URID) for validation entity 80 and an instruction to establish asession with the validation entity. The session may be a secure socketlayer (or secure transport layer) session (e.g., SSL session) withmutual authentication. As part of establishing the session in someimplementations, the third code of verification token 40 may includedirecting data processor 41 to provide, or to cause to be provided, anetwork address for the token to the computer's network services moduleand to validation entity 80. The network address may be static ordynamic, the latter of which may be obtained through API function callsto the computer's network services module. The network address may an IPaddress.

If token 40 wishes to use an Internet browser for a network servicesmodule, it may further comprise API function calls to the computer'soperating system to initiate an instance of the browser and provide itwith access to the browser instance. In some implementations, such aswhen verification entity 40 stores the URID of validation entity 80, thethird code may direct the data processor 41 to establish communicationswith validation entity 80 well before user 1 presents consumer portabledevice 5 to reader 44, and before processor 41 reads device data fromreader 44. Verification token 40 and validation entity 80 may keep thecommunications session active until device 5 is presented to reader 44,and between times that device 5 is presented to reader 44, byintermittently exchanging “heartbeat” messages. For example,verification token 40 may periodically, aperiodically, or randomly sendmessages to validation entity 80 confirming its presence in the session,and validation entity 80 may send a reply message confirming itspresence in the session.

The third code may be executed in response to data being received byprocessor 41 from reader 44, or may be executed prior to receiving datafrom reader 44. In the latter case, the third code may include, as anoption, instructions that direct processor 41 to send an I/O command toreader 44 to enable its reading capability after processor 41 hasestablished communications with validation entity 80.

A fourth code of verification token 40 directs the data processor 41 totransmit at least a portion of identification information to validationentity 80 by way of networking facility 14 of computer 10, wherein theidentification information is transmitted in encrypted form. If an SSLsession has been established, the fourth code may direct data processor41 to pass the identification information to the computer's networkservices module using appropriate function calls to the API for thenetwork services module, and the identification information may betransmitted in the SSL session, where the transmitted and received dataare encrypted by a session key. For an additional layer of security, thefourth code may further comprise code that directs processor 41 toencrypt the identification information with the help of security module43 using an encryption key stored in token 40 before providing it tonetworking facility 14. These instructions may include conventional I/Oinstructions that direct the communications with security module 43 topass the identification information to module 43 and to receive back theencrypted information. An encryption key for this may be stored incomputer-readable medium 42 or in security module 43.

A fifth code of verification token 40 directs data processor 41 toreceive, after transmitting said identification information, a deviceverification value (e.g., dCVV2 value) from validation entity 80 by wayof networking facility 14 of computer 10. This code may comprisefunction calls to the API of the computer's network services module toretrieve data sent by entity 80 in the session. The dCVV2 value may beencrypted by validation entity 80, in which case the fifth code ofverification token may further direct data processor 41 to decrypt theencrypted value, such as by using security module 43 (with input-outputinstruction calls to module 43). The fifth code may include code thatdirects data processor 41 to display the received dCVV2 value to user 1,such as by way of the user interface 13 of computer 10 or a miniatureLCD screen, or the like, integrated with verification token 40. In theformer case, this code may comprise API function calls to the graphicaluser interface of the operating system of computer 10 to open a displaybox on user interface 13 to display the dCVV2 value in alphanumericand/or graphical form. In the latter case, this code may comprise I/Oinstructions to the miniature LCD screen, or the like. In anotherimplementation, verification token 40 may insert the received dCVV2value in the CVV field of the merchant purchase page. In this case, thefifth code may further include code that directs data processor 41 tolocate a browser session on the computer that has a form field for adevice verification value, and to fill the field with the deviceverification value received from the validation entity. This can includefunction calls to the API of the Internet browser to search the activeweb page or all open web pages for an input field marked as CVV, and toinput the dCVV2 value into the CVV field. Unlike an authorization codedescribed above, a dCVV2 value in its clear form (e.g., not encryptedand not encoded) is preferably configured to be enterable into a CVVfield of a merchant web page (e.g., checkout page).

In some implementations, the CVV field on the merchant's page may beconfigured as a hidden field that is not visible to the user. This maybe done to ease the difficulty for the user in conducting thetransaction, and to lessen the chances of the transaction fallingthrough because of user confusion, technical difficulties, or theapparent demand for too much information. In this case, and as anoption, the fifth code may comprise instructions that direct dataprocessor 41 to locate a browser session on the computer that has ahidden field for a device verification value (e.g., the merchant's checkout page), and to fill the field with the device verification valuereceived from the validation entity. In this case, the deviceverification value need not be presented in visual form to the user. Thehidden field can, in many web programming languages, be readilyindicated by a tag identifier or browser variable that is known to boththe merchant and token 40. If processor 41 cannot locate the hiddenfield, then the fifth code may further direct processor 41 to presentthe received device verification value to the user. These instructionscan include function calls to the API of the Internet browser to searchthe active web page or all open web pages for the hidden field (asmarked by the identifier or variable name), to input the dCVV2 valueinto the hidden field, and I/O instructions to an LCD screen or tocomputer 10 to visually present the dCVV2 value if the hidden fieldcannot be located, or function calls to the API of the Internet browserto visually present the dCVV2 value in a temporary browser window if thehidden field cannot be located.

In some configurations, validation entity 80 may provide a dynamicaccount number (often called a “dPAN” in the art) along with the dCVV2value. For these configurations, the fifth code may be augmented toreceive the dPAN along with the dCVV2 value, and to display the dPANvalue to user 1 or to fill the value into an account field of themerchant purchase page, and include instructions similar to thosedescribed above for processing the dCVV2 value. Specifically, the fifthcode may further include code that directs data processor 41 to displaythe received dPAN value to user 1, such as by way of the user interface13 of computer 10 or a miniature LCD screen, or the like, integratedwith verification token 40. In the former case, this code may compriseAPI function calls to the graphical user interface of the operatingsystem of computer 10 to open a display box on user interface 13 todisplay the dPAN value in alphanumeric and/or graphical form. In thelatter case, this code may comprise I/O instructions to the miniatureLCD screen, or the like. In another implementation, verification token40 may insert the received dPAN value in the account field of themerchant purchase page. In this case, the fifth code may further includecode that that directs data processor 41 to locate a browser session onthe computer that has form fields for an account number and deviceverification value (e.g., CVV field), and to fill the account field withthe dPAN value and the device verification value field with the dCVV2value received from the validation entity. This can include functioncalls to the API of the Internet browser to search the active web pageor all open web pages for an input fields marked as “account number” (or“credit card number”) and CVV, and to enter the dPAN value into the“account number” field and the dCVV2 value into the CVV field.

In some configurations, validation entity 80 may provide a billingaddress and/or shipping address (e.g., the user's residence addressand/or business address) associated with the portable consumer device 5along with the dCVV2 value. The address information may have beenpreviously associated with the device 5 by the issuing bank or the userthrough the user's online management account for the device or token.For these configurations, the fifth code may be augmented to receive thebilling address and/or shipping address along with the dCVV2 value, andto fill the address into a corresponding fields of the merchant purchasepage, using instructions similar to those described above for processingthe dCVV2 value. Specifically, the fifth code may further include codethat directs data processor 41 to receive the billing and/or shippingaddress information from validation entity 80 (which may be provided ina specific format with field indicators), to locate a browser session onthe computer that has form fields for billing and/or shippingaddress(es) (e.g., street address, city, state, postal code, country),and to fill these fields with the address information received from thevalidation entity. These instructions can include function calls to theAPI of the Internet browser to search the active web page or all openweb pages for input fields marked with indicators of billing addressand/or shipping address, and function calls to fill these fields.

The use of function calls to various application programming interfaces(APIs) of the operating system of computer 10 its support modules,facilities, and its applications is well known to the software art, andone of ordinary skill in the art will be able to construct instructionsand API function calls to implement the above-described codes and tasksin view of this disclosure without undue experimentation.

FIG. 2 illustrates an exemplary embodiment 140 of a method that can beused by verification token 40. Exemplary method 140 comprises aplurality of actions 141-145. Action 141 comprises establishing acommunications link between the verification token and the computer,with the computer having a networking facility, as described above.Action 142 comprises establishing a communications session between theverification token and a validation entity using the computer'snetworking facility and a network services module therefor. Action 143comprises reading identification information from a portable consumerdevice 5 into the verification token using a reader, such as reader 44.In some implementations, action 143 may precede either or both ofactions 141 and 142. Action 144 comprises transmitting the readidentification information from the verification token to the validationentity through the communications session, the identificationinformation being transmitted to the validation entity in an encryptedform. Action 144 may comprise directing the communications session toencrypt the identification information, and/or encrypting theidentification information using an encryption key stored in the token.A triple DES based algorithm may be used for both encryptions. Action145 comprises, after transmitting the identification information,receiving, at the verification token, a device verification value fromthe validation entity by way of the communications session. Action 145may also include receiving a dPAN and/or address information, asdescribed above.

FIG. 3 illustrates an exemplary embodiment 150 of a method for a user touse verification token 40 and the like. Exemplary method 150 comprises aplurality of actions 151-153. Action 151 comprises coupling averification token, such as token 40, to a computer, such as computer10, using a peripheral interface of the computer. Action 152 comprisespresenting a portable consumer device 5 to the reader of theverification token to obtain a device verification value for the device.If device 5 has a magnetic stripe, action 152 may comprise swiping themagnetic stripe through a magnetic stripe reader of the verificationtoken. If device 5 comprises a wireless communications interface, action152 may comprise waving device 5 near the reader of verification token.Action 153 comprises providing the obtained device verification value toan entity involved with a transaction between the user and the entity.Action 153 may comprise entering the device verification value onto awebpage of entity, or conveying the value over the phone to arepresentative of the entity.

As indicated above, validation entity 80 may use a first validation testto validate verification token 40. For this, verification token 40 maysend its serial number to validation entity 80, along with a messageencrypted by an encryption key, with the message and encryption keybeing known to token 40 and entity 80 (but not the general public), andwith the encryption key further being uniquely assigned to the token'sserial number. Validation entity 80 has a database of serial numbers andthe corresponding uniquely-assigned encryption keys (or storedalgorithms for generating said keys), and can validate that verificationtoken 40 has sent the correct message for the serial number. For this,verification token 40 may comprise a serial number and unique encryptionkey embodied in a computer-readable medium, the unique encryption keybeing unique to verification token 40 (see FIG. 5 for an exemplaryimplementation, “Serial Number” and “Datum for Encrypted message”), andcode that directs data processor 41 to send the serial number and amessage encrypted by the unique encryption key to validation entity 80.The message may be pre-stored on the computer-readable medium (e.g.,stored in “Datum for Encrypted message” in FIG. 5), or derivable frominformation known to both verification token 40 and validation entity80, such as a message derived from an algorithm applied to the currentdate, serial number of token 40, and/or session key of thecommunications session between token 40 and entity 80. In this manner,the message sent by token 40 to validation entity 80 is verifiable byvalidation entity 80 using information stored at the validation entity.The computer-readable medium for the above tasks may be located incomputer-readable medium 42 and/or security module 43. The above codesmay include I/O instructions to security module 43, and function callsto the API of the computer's network services module.

As an option, verification token 40 may send, from time to time, one ormore pieces of machine-unique information of computer 10 to validationentity 80, which may check this information against a database ofcomputer information associated with known fraudsters. Suchmachine-unique information may include the serial numbers of processors,disk drives, and operating systems of computer 10. Verification token 40may comprise code that directs data processor 41 to obtain one or morepieces of machine-unique information from computer 10, and to send themachine-specific information to validation entity 80. This code mayinclude function calls to the API of the computer's operating system toobtain the information, and function calls to the API of the computer'snetwork services module to send the information to validation entity 80.

As another option, verification token 40 may be configured to promptuser 1 for a password to activate one or more features of token 40. Thepassword may be stored on a computer-readable medium located in securitymodule 43 or in computer-readable medium 42 (see FIG. 5 for an exemplaryimplementation of the latter). The password may be provided to user 1 ona piece of paper by the provider or seller of token 40. Token 40 may besent to user 1 through the mail by or on behalf of an issuing bank, ormay be purchased by user 1 in a store. Token 40 may be configured torequire that the password be entered each time the user wishes topresent a consumer portable device 5, and/or each time token 40 iscoupled to a computer 10. For this, verification token 40 may furthercomprise code embodied on computer-readable medium 42 that directs dataprocessor 41 to prompt the user to enter a password on a keyboard ofcomputer 10, to read a password entered by the user, and to compare theentered password against a stored password embodied on thecomputer-readable medium. This code may comprise API function calls tothe graphical user interface of the operating system of computer 10 toopen a display box on user interface 13 to request and receive apassword from user 1, I/O instructions, memory access instructions, andCPU logical and control instructions. Verification token 40 may furthercomprise one or more of the following:

-   -   (1) code embodied on computer-readable medium 42 that directs        data processor 41 to initiate and/or allow the above-described        communications with computer 10 in response to an entered        password matching the stored password;    -   (2) code embodied on computer-readable medium 42 that directs        data processor 41 to initiate and/or allow the above-described        communications with validation entity 80 in response to an        entered password matching the stored password;    -   (3) code embodied on computer-readable medium 42 that directs        data processor 41 to activate reader 44 and/or to accept        identification information from reader 44 in response to an        entered password matching the stored password; and    -   (4) code embodied on computer-readable medium 42 that directs        data processor 41 to initiate and/or allow the above-described        transmission of identification information to validation entity        80 in response to entered password matching the stored password.

These codes may be done with I/O instructions, memory accessinstructions, and CPU logical and control instructions. They, alone orin combination, prevent the transmission of identification informationto entity 80 when the entered password is not the same as the storedpassword, and thereby comprise code embodied on the computer-readablemedium that directs the data processor for doing so. One of ordinaryskill in the art will be able to construct the instructions and APIfunction calls to implement the above-described codes in view of thisdisclosure without undue experimentation. As further protection,validation token 40 may further comprise code embodied oncomputer-readable medium 42 that directs data processor 41 to establisha user name for the token by presenting user 1 with a dialog box toreceive input designating a username, and by storing the username incomputer-readable medium 42 (example shown in FIG. 5). The above codesfor processing the password may be further augmented to includerequesting a username for the token and comparing the received usernamewith the stored username for a match, and including a match as acondition that must be met in each of the four above codes that initiateor allow various actions to be done. These codes may be done with I/Oinstructions, memory access instructions, and CPU logical and controlinstructions.

In further implementations, as further protection, validation token 40may further comprise code embodied on computer-readable medium 42 thatdirects data processor 41 to establish one or more shipping addressesand/or billing addresses in the token that token 40 can use to fill intoform fill locations of a merchant page. Each shipping address and/orbilling address may be associated with a portable consumer device. Thecode may direct processor 41 to present a series of dialog boxes to theuser by way of the computer's user interface 13 to receive the addressinformation and the account number (or last four digits thereof) of theportable consumer device 5 that is to be associated to the addressinformation, and to store the address information in a computer-readablemedium, such as medium 42 (as illustrated by the example shown in FIG.5). Token 40 may further comprise code embodied on computer-readablemedium 42 that directs data processor 41 to access the addressinformation in response to a request being sent to validation entity 80(the address information may be selected among many stored addressesbased on the account number sent in the request), and to fill theaddress information into appropriate locations of a merchant checkoutpage, such as when a dCVV2 value is received back from validation entity80. The code may be configured to direct processor 41 to only fill inthe address information when the locations for the information on themerchant checkout page are blank, and when validation entity 80 has notprovided address information, as described above. The filling code maybe further configured to direct data processor 41 to use shipping and/orbilling information stored on portable consumer device 5 when shippingand/or billing information is not store in token 40 for the accountnumber of device 5, and further if the locations for the shippinginformation on the merchant checkout page are blank and validationentity 80 has not provided address information, as described above. Thefilling code may include code that directs data processor 41 to locate abrowser session on the computer that has a form fields for addressinformation and/or a device verification value, and to fill the addressfields with the selected address information. This can include functioncalls to the API of the Internet browser to search the active web pageor all open web pages for an input field marked as name, address, city,postal code, country, and CVV, and to input the datum of the selectedaddress information into the appropriate fields. The above codes may beimplemented with API function calls, I/O instructions, memory accessinstructions, and CPU logical and control instructions.

In each of the embodiments described herein pertaining to verificationtoken 40, token 40 may send the identification information pertaining toportable consumer device 5 to computer 10 in a number of forms,including: (1) unaltered form (“clear form”), (2) encrypted form, (3)hashed formed (e.g., encoded), (4) signed form, (5) or any combinationof these forms. These forms may be generated by portable consumer device5, verification token 40, computer 10, or any combination thereof. Inaddition, verification token 40 and validation entity 80 may perform amutual authentication process before verification token 40 sends theidentification information.

In each of the embodiments described herein pertaining to verificationtoken 40, the above codes of token 40 and the identification informationread from device 5 by token 40 may be stored independently of computer10 and may be secure from programs (including spyware and othermalicious programs) running on computer 10. In such implementations, theidentification information is put in secure form (e.g., encrypted,hashed, signed, or combination thereof) by verification token 40 beforethe information is provided to computer 10. Accordingly, securing theinformation is not dependent upon the security of computer 10. Symmetricor asymmetric keys may be used for encryption and signing. The keys fora verification token 40 may be unique with respect to other verificationtokens (that is, the keys for a token may be unique to that token). Keysfor a token, and particularly symmetric keys, may be based upon auniquely assigned serial number for the verification token, which thetoken can communicate to validation entity 80 in an initialcommunication. Both the verification token and the validation entity mayhave a shared secret on how to derive a key from the token's serialnumber, such as by manipulating and/or replacing selected digits of theserial number. A number of keys may be derived from the unique serialnumber using respective shared secrets. Thus, the challenge and responsemessages used in a mutual authentication process between a verificationtoken and a validation entity may be signed using respective keysderived from the serial number of the verification token.

Integrated Embodiments

Verification token 40 may be physically incorporated within the housingof the user's computer 10 or components thereof, such as within thehousing for the computer's keyboard, computer's monitor, or computer'smouse. In these implementations, verification token 40 is still adaptedto be communicatively coupled to a peripheral interface 16 of computer10, as described above. In an implementation where verification token 40is physically located within computer 10, token 40 may becommunicatively coupled to computer 10 by way of an internal peripheralinterface, such as to an internal USB hub located on the motherboard ofcomputer 10, thereby providing an internal USB interface connection.FIG. 8 shows a laptop computer 10-1 having the components of computer 10shown in FIG. 6, plus a USB hub 16 b disposed on the motherboard ofcomputer 10-1, within the housing of computer 10-1. USB Hub 16 b iselectrically coupled to an input-output controller 16 a of the computer,which in turn is electrically coupled to the computer's processor 11.Processor 11 is also electrically coupled to memory 12 and othercomponents illustrated in FIG. 1. Input-output controller 16 a and USBhub 16 b are parts of the computer's peripheral interface 16. Token 40communicates to USB hub 16 b using communication data packetstransmitted in each direction on a miniature USB line. Also shown inFIG. 8 are various location implementations of verification token 40,which are identified by reference numbers 40-1 through 40-4. Forexample, a verification token 40-1 may be located in the monitor ofcomputer 10 behind a location of the display screen, so that user 1 canpresent portable consumer device 5 by moving device 5 to the computer'sdisplay screen in the location of token 40-1. A miniature USB cable,shown by a dotted line, connects token 40-1 to a downstream port of USBhub 16 b. In another implementation, a verification token 40-2 may belocated under a selected key or group of selected keys of the computer'skeyboard, so that user 1 can present portable consumer device 5 bymoving device 5 to the selected key(s) of the computer's keyboard in thelocation of token 40-2. A miniature USB cable, shown by a dotted line,connects token 40-2 to a downstream port of USB hub 16 b. In anotherimplementation, a verification token 40-3 may be located under the mousetouch pad of the computer's keyboard, so that user 1 can presentportable consumer device 5 by moving device 5 to the computer's mousetouchpad area in the location of token 40-3. A miniature USB cable,shown by a dotted line, connects token 40-3 to a downstream port of USBhub 16 b. In another implementation, a verification token 40-4 may belocated under a clear area of the computer's keyboard (e.g., an areawithout keys or mouse pad), so that user 1 can present portable consumerdevice 5 by moving device 5 to the computer's keyboard in the locationof token 40-4. A miniature USB cable, shown by a dotted line, connectstoken 40-4 to a downstream port of USB hub 16 b. Each of theseimplementations provides the advantage of a more stable electricalconnection between token 40 and computer 10, and reduces the chances oftoken 40 being damaged or lost. Each of components 11, 12, 16 a, 16 b,and 40 is disposed within the housing of computer 10-1.

In each of the implementations shown in FIG. 8, token 40 may be disposedon a substrate of one of the components of computer 10-1, or may bedisposed on its own substrate or in its own package that is attached tothe computer's housing. FIG. 9 shows an implementation where token 40-4is disposed on the interconnect substrate of the computer's keyboard,which may comprise a flexible substrate of thin alternating layers ofconductive traces and electrically insulating material. The antenna(e.g., pick-up coil) of the token's reader 44 may be implemented as oneor more coiled loops of conductive material formed in one or more of thelayers of conductive traces. The remaining components of token 40 may beintegrated into a semiconductor die package that is mounted on thekeyboard interconnect substrate, or integrated onto a semiconductor diethat is flip-chip mounted on the keyboard interconnect substrate.Instead of the keyboard interconnect substrate, token 40 may beintegrated in the above manner onto one of the screen's interconnectboards or the computer's motherboard. In this case, the integration oftoken 40 on the screen's interconnect board or the computer'smotherboard may take the same form as that shown and described in FIG. 9(that is, the Interconnect Substrate shown in FIG. 9 may also be thecomputer's motherboard).

In additional implementations, token 40 may be distributed in two ormore parts within computer 10. For example, the token's card reader 44or a portion of the card reader 44 (e.g., antenna/pick-up coil,combination of antenna/pick-up coil and amplifier, etc.) may be disposedat the above-noted locations of 40-1 through 40-4, and the remainder oftoken 40 may be disposed near the USB hub. These implementations areillustrated in FIG. 10, where the exemplary locations of the token'scard reader 44 or portion thereof are shown by reference numbers 40-R1through 40-R4, respectively, which correspond to the locations 40-1through 40-4, respectively, described above. Also shown in FIG. 10 isthe location of the remainder of token 40 at reference number 40-M,which will also be referred to as the main token portion 40-M. Aminiature USB line (shown by a dotted line) connects main token portion40-M to a downstream port of the USB hub, and a set (shown by a dottedline) of one or more wires that connect the main token portion 40-M tothe reader 44 or portion thereof (one of locations 40-R1 through 40-R4).These implementations have the same advantages as the implementationsshown in FIG. 8. In addition, the implementation configuration shown inFIG. 10 has the advantage of enabling token 40 to have multiple readersdisposed at different locations of the computer 10, if desired. It alsohas the advantage of enabling the reader portion 40-R to be located inan area of low-electrical noise while enabling the main token portion tobe located in a secure area of the computer's motherboard.

FIG. 11 shows an implementation where reader portion 40-R4 is disposedon the interconnect substrate of the computer's keyboard, which maycomprise a flexible substrate of thin alternating layers of conductivetraces and electrically insulating material. The antenna (e.g., pick-upcoil) of the token's reader 44 may be implemented as one or more coiledloops of conductive material formed in one or more of the layers ofconductive traces. The remaining components of reader 44 may beintegrated into a semiconductor die package that is mounted on thekeyboard interconnect substrate, or integrated onto a semiconductor diethat is flip-chip mounted on the keyboard interconnect substrate.Instead of the keyboard interconnect substrate, reader portion 40-R4 maybe integrated in the above manner onto one of the screen's interconnectboards or the computer's motherboard. In this case, the integration oftoken 40-R4 on the screen's interconnect board or the computer'smotherboard may take the same form as that shown and described in FIG.11 (that is, the Interconnect Substrate shown in FIG. 11 may also be thecomputer's motherboard).

In each of the above implementations, the USB hub 16 b may be replacedby a wireless Bluetooth hub (e.g., transceiver) or other communicationshub (e.g., transceiver), and verification token 40 may comprise aBluetooth transceiver (i.e., wireless transceiver) that communicateswith the Bluetooth hub (e.g., transmits and receives) usingcommunication packets.

In additional implementations, token 40 may be disposed in componentsthat may be electrically coupled to computer 10, such as keyboards,monitors, and mice that are electrically coupled to a “desk-topcomputer” implementation of computer 10. FIG. 12 shows an implementationwhere token 40 is disposed within a keyboard component. The keyboardcomponent has a USB connector disposed outside of the component'shousing, a USB hub 160 disposed within the component's housing, a USBcable that electrically connects the USB connector to the upstream portof USB hub 160. Token 40 is electrically coupled to one of thedownstream ports of the USB hub 160, and a keyboard controller iselectrically coupled to another one of the hub 160's downstream ports.USB hub 160 is a well-known component in the art, and it multiplexes USBcommunications packets between the computer coupled to the USB connectoron the one hand, and token 40 and the keyboard controller on the otherhand. Token 40 may be located in any of the locations of tokens 40-2through 40-4 shown in FIG. 9, such as under a selected key or group ofselected keys in a location 40-2L, under a mouse touch pad in a location40-3L, or under a clear area of the keyboard in a location 40-4L. Inaddition, Token 40 may be separated into two portions 40-M and 40-R, asshown and described above with respect to FIG. 10.

FIG. 13 shows an implementation where token 40 is disposed within astand-alone computer monitor. The monitor has a USB connector disposedoutside of the monitor's housing, a USB hub 160 disposed within themonitor's housing, a USB cable that electrically connects the USBconnector to the upstream port of USB hub 160. Token 40 is electricallycoupled to one of the downstream ports of USB hub 160, and a monitorcontroller is electrically coupled to another one of hub 160'sdownstream ports. USB hub 160 multiplexes USB communications packetsbetween the computer coupled to the USB connector on the one hand, andtoken 40 and the monitor controller on the other hand. Token 40 may belocated in any location of the periphery of the monitor or screen areaof the monitor. In addition, token 40 may be separated into two portions40-M and 40-R, as described above with respect to FIG. 10. Thestand-alone computer monitor has one or more interconnect substratesdisposed behind the visual screen area, and token 40 may be integratedonto one of these interconnect substrates in either of the mannersillustrated in FIGS. 9 and 11, respectively.

FIG. 14 shows an implementation where token 40 is disposed within astand-alone computer mouse. The mouse has a USB connector disposedoutside of the mouse's housing, a USB hub 160 disposed within themouse's housing, a USB cable that electrically connects the USBconnector to the upstream port of USB hub 160. Token 40 is electricallycoupled to one of the downstream ports of USB hub 160, and a mousecontroller is electrically coupled to another one of the hub 160'sdownstream ports. USB hub 160 multiplexes USB communications packetsbetween the computer coupled to the USB connector on the one hand, andtoken 40 and the mouse controller on the other hand. Token 40 may belocated in any location of the periphery of the monitor or screen areaof the monitor. In addition, token 40 may be separated into two portions40-M and 40-R, as described above with respect to FIG. 10. Thisimplementation is shown in FIG. 15. A miniature USB line (shown by adotted line) connects main token portion 40-M to a downstream port ofUSB hub 160, and a set (shown by a dotted line) of one or more wiresthat connect the main token portion 40-M to the reader 44-R.

In each of the above implementations, the USB hub 160 may be replaced bya wireless Bluetooth hub or other communications hub, and verificationtoken 40 may comprise a Bluetooth transceiver (i.e., wirelesstransceiver) that communicates with the Bluetooth hub (e.g., transmitsand receives) using communication packets. In another implementation,verification token 40 may use its Bluetooth interface to directlycommunicate with a Bluetooth transceiver disposed in computer 10 (e.g.,desk-top implementation of computer 10). In this implementation, USB hub160 may be replaced by a Bluetooth transceiver for the component'scontroller.

The combination formed by the incorporation of token 40 within computer10 or a computer peripheral device is different from single-purposemachines like electronic ticketing and vending machines,merchandise-purchasing kiosks, and point-of-sale (POS) credit cardterminals. Instead, computer 10, in and of itself, is a multi-purposemachine whose operation is directed by the user. In contrast, theabove-mentioned single-purpose machines direct the actions of the userby directing the user's inputs in a predetermined pattern with promptsdisplayed on a screen. As indicated above, computer 10 comprises amulti-tasking operating system with a user interface, where theoperating system enables the user to selectively choose andsimultaneously execute two or more different application programs, andwhere the user interface allows the user to selectively provide inputsto the two or more simultaneously running application programs through akeyboard and mouse device and to direct the flow of the programs'executions. As a further difference with many conventionalsingle-purpose machines, token 40 is integrated within the housing ofcomputer 10 or computer peripheral, where said computer 10 or computerperipheral has a primary function that is different and separate fromthat of token 40. As a difference with many peripheral card readers,token 40, including its card reader and antenna, may be disposed withinthe housing of computer 10 or a housing of a computer peripheral device,and is not detachable from said housing. It may be attached to thehousing, a motherboard or interconnect substrate disposed in thehousing, or chassis disposed in the housing, and may be disposed in amanner such that its position relative to the housing is fixed andnon-detachable. Moreover, token 40 may be disposed such that it isbehind an impenetrable surface of the housing of the computer or housingof the peripheral device. As a difference with many so-called electronicwallets, selected embodiments of token 40 do not permanently store theidentification information that they read from the portable consumerdevices. Typically, the information is not stored for more than 10minutes, and is typically erased within 10 minutes or 24 hours, or iserased the next time token reads a portable consumer device. In anyevent, this action is incompatible with electronic wallets, which intendto store credit card data from a long time (several months) so that thewallet can take the place of the user's credit cards in the field.

Having described various embodiments and implementations of verificationtoken 40, various embodiments and implementations of validation entityare now described. Validation entity 80 comprises a system having one ormore servers coupled to a communications network that can receive arequest from a verification token 40 to process (e.g., to validate) theidentification information that the token has read from a portableconsumer device 5, and to provide a device verification value (dCVV2) tothe token and to payment processing network 70 if the identificationinformation passes one or more validation tests. One of the servers ofentity 80 is shown in FIG. 1; the server comprises one or moreprocessors 81 electrically coupled to each of a tangiblecomputer-readable medium 82, a user interface 83, one or more databases86, and a networking facility 84, the latter of which is coupled tofirst and second communications networks 31 and 32. User interface 83comprises one or more video output devices (e.g., displays, screens) andone or more input devices (e.g., keyboard, mouse, trackball, etc.),which enable an administrator of entity 80 to receive information fromthe server and to provide input to the server. Computer-readable medium82 may comprise a combination of semiconductor memory and non-volatilestorage, such as one or more disk drives and/or non-volatile memory.

Computer-readable medium 82 stores an operating system for the server,which enables processes and applications to be run by processor(s) 81,and enables codes for directing the operation of processor(s) 81 to berun. The operating system provides services to these processes andapplications, and enables these processes and applications to accesscomponents of user interface 83, portions of computer-readable medium82, networking facility 84, and other components of entity 80. Theoperating system may be full featured. Specifically, the operatingsystem provides one or more I/O communications modules that enableprocessor(s) 81 to communicate with user interface 83 and databases 86.Each I/O communications module has an application programming interface(API) with a collection of functions that a processor 81 can call inorder to access the components. The operating system of entity 80 alsocomprises one or more network services modules that can accessnetworking facility 84 and set up communications sessions to entities oncommunications networks 31 and 32, and with SMS relay server 35. Suchnetwork services modules include Microsoft's Windows CommunicationsFoundation (e.g., .NET 3.0, .NET 4.0, etc.), Apple's CFNetworkFramework, the networking section of the Unix and Linux operating systemkernels, and the OS Services Layer and the Base Services Layer of theSymbian operating system, and the like. Each of these network servicesmodules can be non-exclusive (e.g., capable of serving more than oneprocessor and more than one process/application) and each provides anapplication programming interface (API), which has a collection offunctions that a processor 81 can call in order to manage communicationswith another entity. With these API facilities, a collection of APIfunction calls can be readily constructed for a processor to executethat enables the processor to establish a communications channel with anentity on a communications network coupled to networking facility 84,and to exchange messages and data with the entity. The above operatingsystem, modules, and APIs all include instructions that direct theoperation of processor(s) 81.

One or more databases 86 may be configured as database servers, whichprocessor(s) 81 can access via networking facility 84 over a privatecommunications network 87, which is illustrated by the dashed line inFIG. 1. Validation entity 80 conventionally has a clock 88 for trackingtime and dates for various applications. Clock 88 may be a simplecounter of seconds, or fractions thereof, that can be read by processor81 by an I/O operation, or may comprise a more complex arrangement ofhardware or firmware that can provide the various components of thecurrent date and time (year, month, day, hour, minute, and second) invarious registers that can be read by processor 81 through the executionof one or more I/O operations.

Validation entity 80 can process identification information transmittedfrom a plurality of different verification tokens 40 (e.g., millions oftokens), and can process any number of transmissions by a particulartoken 40. Validation entity 80 applies one or more validation tests toverification token 40 and/or the identification information to obtain alevel of confidence that the portable consumer device 5 was actuallypresented to verification token 40 to request the dCVV2 value. When theone or more validation tests are passed, and preferably when none of thetests are failed, validation entity 80 sends a dCVV2 value toverification token 40, and optionally to payment processing network 70along with the account number present in the identification. For thesetasks, validation entity 80 may comprise code embodied oncomputer-readable medium 82 that directs data processor 81 tocommunicate with computer 10 and verification token 40 using networkingfacility 84 over communications network 31. This code may includeinstructions that establish a communications session with computer 10,including the option of establishing an SSL session with mutualauthentication and encryption based on a triple DES algorithm, andinstructions for sending and receiving messages to verification token 40through the communications session. Validation entity 80 may furthercomprise code embodied on computer-readable medium 82 that directs dataprocessor 81 to receive encrypted identification information sent byverification token 40, and code that directs data processor 81 todecrypt the encrypted identification information. The identificationinformation may be encrypted by a session key of an SSL session or by anencryption key stored in verification token 40 and known to validationentity 80, or may be doubly encrypted by both keys. The latter key maybe uniquely assigned to the token. Validation entity 80 may furthercomprise code embodied on computer-readable medium 82 that directs dataprocessor 81 to apply one or more validation tests as previouslydescribed above, and to send the dCVV2 value to token 40 and tooptionally send the dCVV2 value and account number to payment processingnetwork 70, if a selected number of validation tests are passed. Dataprocessor 81 may access databases 86 in performing the one or morevalidation tests. The validation tests and codes therefor are describedbelow in greater detail. These codes and codes described below forvalidation entity 80 may be implemented in any number of programminglanguages. Furthermore, one of ordinary skill in the art will be readilyable to construct instructions to implement these codes in view of thisdisclosure without undue experimentation.

As described above, a first validation test that validation entity 80may apply pertains to verifying that verification token 40 is authentic.For this, verification token 40 may send its serial number to validationentity 80, along with a test message encrypted by an encryption key,with the test message and encryption key (or corresponding decryptionkey) being known to token 40 and entity 80 (but not the general public),and with the encryption key further being uniquely assigned to thetoken's serial number. Validation entity 80 may access a database oftoken serial numbers and corresponding uniquely-assigned encryption keys(or corresponding decryption keys) in one of databases 86, and maydetermine whether verification token 40 has sent a correct test messagefor the serial number that the token provided. The test message may befixed or variable; in the latter case it may be generated based oninformation known to both token 40 and entity 80. The test message maybe encrypted and decrypted by a triple DES algorithm, which can beimplemented by a number of well known sets of computer instructionsusing a single symmetric encryption key. The test message may also beencrypted by a first key of an asymmetric encryption key set at theverification token 40 and decrypted by the second key (the decryptionkey) of the asymmetric encryption key set at validation entity 80, whichcan be implemented by a number of well known sets of computerinstructions. To validate the encrypted test message sent by token 40,entity 80 can decrypt the test message using the key that it has, andcan compare the decrypted test message to a set of acceptable messagesfor a match. Entity 80 may also validate the encrypted test message inthe reverse way by encrypting the set of acceptable messages andcomparing the encrypted test message sent by token 40 to its set ofencrypted acceptable messages. If the sent test message is correct, thefirst validation test can be deemed to have been passed, otherwise thefirst validation test is deems to have failed.

To implement the above validation test, validation entity 80 maycomprise code embodied on computer-readable medium 82 that directs dataprocessor 81 to receive one or more messages from verification token 40via networking facility 84 that has the token's serial number andencrypted test message, code that directs data processor 81 to obtainfrom one of databases 86 a key that has been assigned to the receivedserial number of the token and one or more acceptable messages that canbe accepted as the correct test message, and code that directs the dataprocessor to validate the encrypted test message from the token usingthe encrypted test message, the obtained key, and the obtained one ormore acceptable messages. The latter validation code may comprise codethat directs data processor 81 to decrypt the encrypted test messageusing the obtained key, and code that directs data processor 81 tocompare the decrypted test message to the one or more acceptablemessages to determine if the first validation test has been passed (inthe case of a match between the decrypted test message and an acceptablemessage), or has been failed (in the case of no such match). Inaddition, or as another approach, the above validation code may comprisecode that directs data processor 81 to encrypt the obtained acceptablemessages with the encryption key for token 40 (as found in the databaseaccording to the token's serial number), to compare the encrypted testmessage from token 40 to the one or more encrypted acceptable messagesto determine if the first validation test has been passed (in the caseof a match between the encrypted test message and an encryptedacceptable message), or has been failed (in the case of no such match).An acceptable message may be obtained by accessing it directly from oneof databases 86, or by generating it from information stored in one ormore of databases 86. As an option, if the first validation test isfailed, validation entity 80 may record the serial number of the failedtoken 40 and the source IP address from which the failed token 40 madethe request in one of databases 86. For this, validation entity 80 mayfurther comprise code that directs data processor 81 to obtain thesource IP address from the request message and to store the source IPaddress and the token's serial number as one record or two separaterecords in one of databases 86, which may be called the failedvalidation database 86. This information may be accessed as port of thesecond validation test described below. The above codes can beimplemented with conventional I/O instructions, API function calls todatabases, memory access instructions, CPU arithmetic and logicinstructions, and CPU control instructions. In view of this disclosure,the codes may be implemented by one of ordinary skill in the art withoutundue experimentation.

As a second validation test, validation entity 80 may have a database indatabases 86 that tracks the serial numbers of verification tokens thathave been used in fraudulent activities (e.g., suspicious tokens), andvalidation entity 80 may check the serial number of verification token40 against this database. If a check of this database indicates thatverification token 40 has not been involved in fraudulent activity or isnot otherwise suspicious, the second validation test can be deemed tohave been passed. To assist in tracking fraudulent activity back to averification token, validation entity 80 may send the serial number oftoken 40 along with the dCVV2 value and account number that it sends topayment processing network 70. If network 70 later finds out that thetransaction processed with the account number provided by token 40 wasfraudulent, it can send a message to that effect to validation entity80, and entity 80 may then enter the serial number of the token into thedatabase of tokens used in fraudulent activities. To implement thesecond validation test, validation entity 80 may comprise code embodiedon computer-readable medium 82 that directs data processor 81 to receivea message from verification token 40 via networking facility 84 that hasthe token's serial number, code that directs data processor 81 to havethe received serial number compared with serial numbers stored in adatabase of databases 86 that stores serial numbers of suspicious tokensused in fraudulent transactions to determine if the second validationtest has been passed (no fraudulent activity), or has been failed(fraudulent activity). This code may further include instructions thatdirect processor 81 to obtain the source IP address of the message fromtoken 40, and to compare the source IP address and the serial number oftoken 40 to IP addresses and serial numbers in the failed validationdatabase 86 for a match. If a match is found, the second validation testmay be deemed to have been failed. Checking the token serial numbers andIP addresses in this way prevents retry attacks by fraudsters. The abovecodes can be implemented with conventional I/O instructions, APIfunction calls to databases, memory access instructions, CPU logicinstructions, and CPU control instructions. In view of this disclosure,the codes may be implemented by one of ordinary skill in the art withoutundue experimentation.

As a third validation test, validation entity 80 may send a message toverification token 40 requesting that token 40 send it one or morepieces of computer-specific information about computer 10, such as theserial numbers of one or more of the following: the computer'sprocessor, one or more of the computer's disk drives, the computer'soperating system. Validation entity 80 may receive this information andcheck it against a database storing computer-specific information ofsuspicious computers known to have been involved in fraudulent activity.If a check of this database indicates that the computer 10 used byverification token 40 has not been involved in fraudulent activity, thethird validation test can be deemed to have been passed. To assist intracking fraudulent activity back to computer 10, validation entity 80may send the serial number of token 40 and the computer-specificinformation along with the dCVV2 value and account number that it sendsto payment processing network 70. If network 70 later finds out that thetransaction processed with the account number provided by token 40 wasfraudulent, it can send a message to that effect to validation entity80, and entity 80 may then enter the serial number of the token into thedatabase of suspicious tokens used in fraudulent activities, and thecomputer-specific information into the database of suspicious computersknown to have been involved in fraudulent activity. To implement thethird validation test, validation entity 80 may comprise code embodiedon computer-readable medium 82 that directs data processor 81 to send amessage to verification token 40 requesting computer-specificinformation (if verification token 40 has not sent such informationbeforehand without prompting), code that directs data processor 81 toreceive one or more data messages from verification token 40 vianetworking facility 84 that have the token's serial number and thecomputer-specific information, and code that directs data processor 81to have the received computer-specific information compared withcomputer-specific information stored in a database (of databases 86)that stores computer-specific information of suspicious computers usedin fraudulent transactions to determine if the third validation test hasbeen passed (no fraudulent activity), or has been failed (fraudulentactivity). The above codes can be implemented with conventional I/Oinstructions, API function calls to databases, memory accessinstructions, CPU logic instructions, and CPU control instructions. Inview of this disclosure, the codes may be implemented by one of ordinaryskill in the art without undue experimentation.

By conducting one or more of the above three validation tests,validation entity 80 can obtain some degree of confidence that theidentification information sent by token 40 is valid, and can, in someimplementations, provide the dCCV2 value to token 40 and paymentprocessing network 70. In this case, verification token 40 does not needto send the digital fingerprint or the variable datum of the portableconsumer device 5 in the identification information, and does not needto obtain these datum from device 5.

To increase the degree of confidence, validation entity 80 may perform afourth validation test that compares a digital fingerprint received inthe identification information, if present, with the stored copy of thevalid digital fingerprint that entity 80 has for the account numberspecified by the identification information. If the digital fingerprintsmatch to an acceptable degree (e.g., the degree of similarity, orcorrelation, of the two fingerprints being above a selected level ofsimilarity), validation entity 80 can deem the fourth validation test asbeing passed. The degree of similarity between the two fingerprints maybe assessed by applying a correlation function to the two fingerprints.Such correlation functions are well known to the art. Before receivingidentification information for a portable consumer device 5 from atoken, the issuing bank for the device may provide validation entity 80with the valid digital magnetic fingerprint of the device, which entity80 may store in one of databases 86. When validation entity 80 receivesidentification information from a verification token 40 for a specificportable consumer device 5, it accesses databases 86 for its record ofthe valid digital fingerprint, and compares the received fingerprintagainst the valid digital fingerprint to assess a degree of similarity,and to determine if the fourth validation test has been passed (e.g.,the degree of similarity between the two fingerprints is above aselected level), or has been failed (e.g., the degree of similaritybetween the two fingerprints is below the selected level). To implementthe fourth validation test, validation entity 80 may comprise codeembodied on computer-readable medium 82 that directs data processor 81to obtain the stored valid digital fingerprint for the account from oneof databases 86, and code that directs data processor 81 to compare thereceived digital fingerprint and the stored valid digital fingerprintfor similarity to determine if the forth test is passed (sufficientsimilarity) or failed (not sufficient similarity). The latter code maycomprise code that directs data processor 81 to generating a valuerepresentative of the similarity between the two fingerprints byapplying one or more correlation functions to the fingerprints, andcomparing the value against a selected level. Such correlationfunctions, also known as probabilistic models, are known to the creditcard art. The above codes can be implemented with conventional I/Oinstructions, API function calls to databases, memory accessinstructions, CPU arithmetic instructions, CPU logic instructions, andCPU control instructions. In view of this disclosure, the codes may beimplemented by one of ordinary skill in the art without undueexperimentation.

To also increase the degree of confidence over that provided by thefirst three validation tests described above, validation entity 80 mayperform a fifth validation test that compares a variable datum (e.g.,CVC3, dCVV, cryptogram) received as part of the identificationinformation, if present, with a set of one or more acceptable values forthe variable datum that validation entity 80 has for the account numberprovided as part of the identification information. If the values match,validation entity 80 can deem the fifth validation test as being passed.There are number of ways that the variable datum can be configured tovary with time. As some examples, the variable datum can be configuredto have its value vary with each use of portable consumer device 5, anddevice 5 can provide a counter value in the datum or along with thedatum. Validation entity 80 or a payment processing network can use thecounter value to determine what value the variable datum should have forthe given counter value. This determination may be done based on analgorithm that is a function of the counter value (and/or other possiblevariables), or a look-up table whose entries are correlated to thecounter value (the table may be cyclically repeated). The algorithm maycomprise one or more random number generators, each of which accepts astarting “seed” value, whose value can be selected to customize thealgorithm to a particular portable consumer device 5. The values of thelook-up table may be based on the output of the algorithm. The variabledatum may also be based on time, date, or other information known toboth verification token 40 and entity 80, which may or may not use acounter value. Additional ways of generating the values of a variabledatum are discussed in U.S. patent application Ser. No. 10/642,878entitled “Method and System for Generating a Dynamic Verification Value”filed on Aug. 18, 2003, and in U.S. patent application Ser. No.11/764,376 entitled “On-Line Payment Transactions” filed on Jan. 29,2008. Both of these applications are incorporated herein by reference intheir entirely for all purposes. In some implementations, there may beslight differences in the starting information that device 5 and entity80 use in generating their respective datum values, such as differencesin the times of their clocks, and entity 80 may generate a set ofacceptable datum values based on possible slight differences in thestarting information, and may compare the datum value received fromdevice 5 with each member of the set to determine if a match exists.

A cryptogram, which typically has more characters than a CVC3 value or adCVV value, may be generated by an algorithm in a similar way asdescribed above, except that a piece of transaction information isusually included as an input to the algorithm. As previously describedbelow, if token 40 seeks a cryptogram from a cryptogram-enabled device5, it provides device 5 with dummy transaction information which isknown to both token 40 and validation entity 80, but not known to thegeneral public. When the variable datum received by entity 80 from token40 comprises a cryptogram (which may be deduced from the characterlength of the variable datum or the account number of the device 5),validation 80 may look up the dummy transaction information in one ofits databases 86 based upon the serial number of token 40. Validationentity 80 may determine the identity of the issuing bank 60 for thedevice 5 based on the device's account number, and may request thecurrent value of the card's Application Transaction Counter (ATC) fromthe issuing bank 60. Entity 80 may then generate the cryptogram based onthe dummy transaction information, the ATC, and other information usedin the algorithm, and compare the generated cryptogram with thecryptogram received from token 40. If the cryptograms match, validationentity 80 can deem the fifth validation test as being passed. In someimplementations, there may be slight differences in the ATC values thatdevice 5 and entity 80 use in generating their respective cryptograms,and entity 80 may generate a set of acceptable cryptograms based onsmall incremental differences in the ATC value, and may compare thecryptogram received from device 5 with each member of the set todetermine if a match exists. If a match cannot be found, the fifthvalidation test is deemed to have been failed. As another approach,validation entity 80 may forward a request for the cryptogram's value tothe issuing bank 60 along with a copy of the dummy transactioninformation. Validation entity 80 may then compare the cryptogramreceived back from the issuing back to that received from token 40 todetermine whether there is a match. As yet another approach, validationentity 80 may forward the dummy transaction information and thecryptogram received from token 40 to the issuing bank 60 with a requestthat the bank determine whether the cryptogram is valid or not, and tosend its determination to validation entity 80. Validation entity 80 maythen determine that the fifth validation test is passed if the banksends an indication that the cryptogram received from token 40 is valid,and failed otherwise.

Before receiving identification information for a portable consumerdevice 5 from a token, the issuing bank for the device may providevalidation entity 80 with the look-up table, algorithm (including anyseed values), or other data elements that the device uses to generatethe device's variable datum (e.g., CVC3, dCVV, or cryptogram), whichentity 80 may store in one of its databases 86. When validation entity80 receives identification information from a verification token 40 fora specific portable consumer device 5, it accesses its record of thelook-up table, algorithm, or other data elements for the specific device5 to determine its value or set of values for the device's variabledatum, and compares the received value for a variable datum (e.g., CVC3,dCVV, or cryptogram) against its value or set of acceptable values forthe variable datum to determine if the fifth validation test has beenpassed (e.g., a match in values is found), or has been failed (e.g., amatch has not been found). To implement the fifth validation test,validation entity 80 may comprise code embodied on computer-readablemedium 82 that directs data processor 81 to access the one or morestored data elements used to obtain the variable datum for the accountfrom one of databases 86, code that directs data processor 81 to obtainone or more acceptable values for the variable datum from the one ormore stored data elements, and code that directs data processor 81 tocompare the received variable datum and the one or more acceptablevalues for a match to determine if the fifth test is passed (a match isfound) or failed (a match is not found). The code that directs dataprocessor 81 to obtain one or more acceptable values may be based uponthe look-up table method described above, or any of the algorithm basedmethods described above. The codes may include instructions that directdata processor 81 to determine if a received variable datum comprises acryptogram, and if so, to obtain the dummy transaction information froma database 86 based upon the serial number of the token. Depending uponthe implementation for processing cryptograms, the code may furtherinclude instructions that direct data processor 81 to determine theidentity of the issuing bank and to obtain an ATC value for the device 5from the bank, and to generate one or more acceptable values of thecryptogram using the dummy transaction information, the ATC value, andother inputs used in the algorithm. Also, the code may further includeinstructions that direct data processor 81 to send the accountinformation and the dummy transaction information to the identifiedissuing bank with a request for one or more acceptable cryptogramvalues. Also, instead of directing processor 81 to obtain one or moreacceptable cryptogram values and to compare the cryptogram received fromtoken 40 to the acceptable cryptogram values, the code may includeinstructions that direct data processor 81 to obtain the dummytransaction information as described above, to identify the issuing bankas described above, to send the account information, dummy transactioninformation, and the cryptogram received from token 40 to the identifiedbank with a request that the bank send back an indication of whether ornot the cryptogram is valid, and to pass or fail the fifth validationtest based on the indication sent back by the issuing bank. The abovecodes can be implemented with conventional I/O instructions, APIfunction calls to databases, memory access instructions, CPU arithmeticinstructions, CPU logic instructions, and CPU control instructions. Inview of this disclosure, the codes may be implemented by one of ordinaryskill in the art without undue experimentation.

Validation entity 80 may be configured to perform one or more of theabove validation tests, and may be configured to send a dCCV2 value toverification token and payment processing network 70 if one or more ofthe tests are passes. Validation entity 80 may comprise code embodied oncomputer-readable medium 82 that directs data processor 81 to execute aselected one or more of the validation tests and track the pass/failresults, and code that directs data processor 81 to generate and sendthe dCVV2 value if a selected number of tests have been passed. Sincethe dCVV2 value is being sent to both the merchant (relayed throughverification token 40) and the payment processing network 70 (which mayforward it to the issuing bank), validation entity 80 may use any methodto generate the dCCV2 value, and need not use the method used byportable consumer device 5 to generate the variable datum (e.g., theCVC3 or dCVV). Validation entity 80 may generate the dCVV2 values usinga pseudo-random number generator or a look-up table, or a sequentialcounter (such as when distributing the values from that counter overdifferent accounts). The dCVV2 generation process can be done on a pertransaction basis (fully dynamic), or for a group of transactions(semi-dynamic), the latter being for a particular device 5 or a group ofdevices 5. If two or more devices 5 are assigned under a common accountnumber, the identification information sent by token 40 may comprises adevice identifier as well as an account number, and validation entity 80may use the device identifier to distinguish between the devices and togenerate different dCVV2 values for the devices that are under a commonaccount number. Validation entity 80 may use a particular dCVV2 valuefor a particular device 5 over a selected time period (such as threedays), and then select another dCVV2 value for the particular device forthe next selected time period, and so on. Moreover, validation entity 80may receive the dCVV2 values to use during the selected time periodsfrom the issuing bank of the device 5 in advance of the selected timeperiods, and store them for later use, as determined by entity 80'sclock. This permits validation entity 80 to omit the action of sendingthe dCVV2 values to payment processing network 70. The deviceverification value provided by validation entity 80 may have the sameformat as the CVC3s and dynamic CVVs (“dCVVs”) output by existingsmartcard credit cards (e.g., a string of 3 or 4 numbers). As anotherapproach, validation entity 80 may send a message to the issuing bank 60for portable consumer device 5 to request a value to provide as thedCVV2 value; this request may include the account number and any deviceidentifier. The above codes and actions can be implemented withconventional I/O instructions, memory access instructions, CPUarithmetic instructions, CPU logic instructions, and CPU controlinstructions. In view of this disclosure, the codes may be implementedby one of ordinary skill in the art without undue experimentation.

As described above, validation entity 80 may send to token 40 the user'sshipping address information and/or billing address information that hasbeen previously associated to device 5. The association may be stored ina database 86 of validation entity 80 or at the issuing bank 60 fordevice 5. Validation entity 80 may further comprise code that directsdata processor 81 to obtain address information for the consumer accountindicated by the account number in the received identificationinformation, either from a database 86 or from an issuing bank 60, andto send the address information to token 40 along with the deviceverification value if a selected number of validation tests have beenpassed, as described above. The above codes and actions can beimplemented with conventional I/O instructions, database function calls,network function calls, memory access instructions, CPU arithmeticinstructions, CPU logic instructions, and CPU control instructions. Inview of this disclosure, the codes may be implemented by one of ordinaryskill in the art without undue experimentation.

As indicated above, validation entity 80 may be configured to send adynamic account number (dPAN) to verification token 40 and the paymentprocessing network 70 along with the dCVV2 value. Validation entity 80may contact the issuing bank 60 for device 5 to obtain the dPAN, or mayread it from a list of dPANs previously sent to entity 80 by bank 60 orcreated by entity 80 or network 70, or may generate it from an algorithmpreviously provided to entity 80 by bank 60. Validation entity 80 maycomprise code embodied on computer-readable medium 82 that directs dataprocessor 81 to execute these actions, as desired by the issuing bank.When payment processing network received the dCCV2 value, dPAN value,and the account number for device 5, it may forward all three datum tothe issuing bank 60 so that the issuing bank can correlate the dPAN tothe account number of device 5. The above codes and actions can beimplemented with conventional I/O instructions, memory accessinstructions, CPU arithmetic instructions, CPU logic instructions, andCPU control instructions. In view of this disclosure, the codes may beimplemented by one of ordinary skill in the art without undueexperimentation.

Verification entity 80 may further comprise code that directs processor81 to send an alert text message to the personal communication device 7of user 1 or send an alert e-mail message to an e-mail account of user 1when one or more of the following events occurs: (1) when verificationtoken 40 initiates communications with entity 80, (2) when verificationtoken 40 reads a portable consumer device 5 of user 1, (3) whenverification entity 80 receives identification information from aportable consumer device 5 or a verification token 40 associated withuser 1, (4) when verification entity 80 validates said identificationinformation, (5) when verification entity 80 sends a dCVV2 value toverification token 40, and (6) when verification entity 80 denies arequest for a dCVV2 value. The alerts sent by entity 80 may includeinformation related to the events that triggered the alerts, such as aportion of the account number involved. The alert text messages may besent from networking facility 84 to an SMS relay server 35 that iscoupled to one of communications networks 31 and 32, along with thephone number or network address of the user's communication device 7.The SMS relay server has an interface to one or more mobilecommunication networks, and can relay the text message to the phonenumber or network address provided by processor 81. Validation entity 80may comprise the relay server. Email alerts may be sent directly to theuser's e-mail account from networking facility 84. For this, networkingfacility 84 may comprise a conventional mail agent, which is well knownto the art.

Validation entity 80 may comprise a website accessible to the user 1that enables the user: (1) to create a password-protected managementaccount associated with the serial number of the token, the latter ofwhich may be provided on a slip of paper originally sent with the token;(2) to associate an e-mail address to be used for one or more of theabove-described alerts; (3) to associate a mobile number and/or URID(e.g., network address) of the user's communications device 5 to be usedfor one or more of the above-described alerts; and (4) to select one ormore of the above-described alert conditions The website may also enablethe user to provide and associate the account numbers for one or more ofthe user's devices 5 with the password-protected account, and mayfurther enable the user to associate the e-mails and mobile numbers forthe alerts to particular devices 5 according to their account numbers.The website may also enable the user to associate a shipping addressand/or billing address to one or more specific device account numbers,which validation entity 80 may provide to token 40 for each dCCV2request made for such a specified device account number. Thisassociation may include an option that the user can select for aspecified device account that directs entity 80 to obtain the addressinformation from the issuing bank 60 for the specified device account.The website may also enable the user to associate a shipping addressand/or billing address to the token itself, which validation entity 80may provide to token 40 for each dCCV2 request in which a shippingaddress and/or billing address has not been associated to the deviceaccount number contained in the dCVV2 request.

One of databases 86 may be assigned to hold the above-describedpassword-protected accounts of the users. When validation entity 80receives a validation request from verification token 40, code in entity80 can direct processor 81 to query this database 86 to find the user'spassword-protected account (e.g., identify the user from the token'sserial number and/or the account number sent in the identificationinformation), to determine what text message alerts and emails are to begenerated and sent based on the parameters stored in thepassword-protected account, to identify the mobile phone number oruniversal resource identifier (e.g., network address) of the personalcommunication device to which to sent the messages, and/or to identifythe email address to which to send the messages, and to send thedetermined messages to the identified destinations. One or more alertspertaining to a particular dCVV2 request may be combined together into asingle text message or email to the user. Entity 80 can also have codethat directs data processor 81 to determine from the account record ifany shipping address information or billing address information is to besent with the dCVV2 fulfillment message by looking up the settings thatthe user may have provided for the device account number indicated inthe dCVV2 request message, and to send the address information to token40 according to the found settings. The above codes and actions can beimplemented with HTML page codes, XML page codes, and the like (e.g.,web pages), conventional I/O instructions, memory access instructions,database API function calls, CPU arithmetic instructions, CPU logicinstructions, and CPU control instructions. In view of this disclosure,the codes may be implemented by one of ordinary skill in the art withoutundue experimentation.

In cases where validation entity 80 sends a dPAN to a verificationtoken, it may send an e-mail alert and/or text alert to the userproviding the user with a transaction number that has been associatedwith the dPAN. The transaction number can enable the user to more easilyreturn goods purchased in the transaction. The transaction number isdifferent from the dPAN and the account number, but enables thetransaction conducted with the dPAN to be traced back to the merchantand the issuing bank. For this, entity 80 may comprise code that directsdata processor 81 to access the user's management account based on theaccount number obtained from the identification information receivedfrom token 40 to obtain a mobile phone number or universal resourceidentifier (e.g., network address) of a personal communication deviceassociated with the account number, or an email address associated withthe account number, and to which the transaction number is to be sent.Entity 80 may further comprise code that directs data processor 81 tosend the transaction number along with the dPAN, date, time, and dCVV2value to the obtained phone number or universal resource identifier ofthe personal communication device, or the obtained email address. Thecode also directs data processor 81 to send this information to paymentprocessing network 70 and/or issuing bank 60, along with the accountnumber for correlation purposes. The code may also direct data processor81 to send the transaction number to token 40, and token 40 may havecode that directs its processor 41 to enter this information in avisible or hidden field of the merchant's checkout page. Token 40's codefor this may be implemented in the same way as the code for entering thedCVV2 value. The above codes and actions can be implemented withdatabase function calls, conventional I/O instructions, memory accessinstructions, database API function calls, CPU arithmetic instructions,CPU logic instructions, and CPU control instructions. In view of thisdisclosure, the codes may be implemented by one of ordinary skill in theart without undue experimentation.

FIG. 4 illustrates an exemplary embodiment 180 of a method that can beused by validation entity 80. Exemplary method 180 comprises a pluralityof actions 181-186. Action 181 comprises establishing a communicationlink between validation entity 80 and a verification token 40 using anetworking facility of validation entity 80. Action 182 comprisesreceiving encrypted identification information pertaining to device 5and/or token information (e.g., serial number and encrypted message)sent by verification token 40. Action 183 comprises decrypting theencrypted information (e.g., encrypted identification information and/orencrypted message from the token). Action 184 comprises applying atleast one validation test to the decrypted information. Action 185comprises transmitting, if a selected number of validation tests arepassed, a device verification value to verification token 40 andoptionally to payment processing network 70. In some implementations, adPAN may be transmitted as well, as described above. In someimplementations, shipping address information and/or billing addressinformation may be transmitted as well, as described above. Action 186comprises identifying the user from the identification information, andsending text and/or email alerts to the user as specified in the user'spassword-protected account.

Yet further embodiments and implementations are described.

It may be appreciated that some implementations of verification token 40may be configured to work with selected consumer payment devices 5, suchas those issued by a selected bank, or configured to work with aselected merchant website 20.

In yet further implementations, verification token 40 may contain theURID of validation entity 80, which handles validation requests forseveral different co-branded portable consumer devices 5. In addition,each of these co-branded devices 5 may hold a URID to a co-brandingmerchant. The merchant URID is read by verification token 40 andprovided to a validation entity along with the device's identificationinformation. Validation entity 80 can send the validated identificationinformation to the merchant URID.

Embodiments of the invention are not limited to authentication systemsinvolving transactions. The same approach could be applied for otherauthentication systems. For example, embodiments could be used toauthenticate a user using an online banking application. A cardholdermay enter his user ID into a banking website. The cardholder can thenpresent his or her portable consumer device to a verification token. Thebanking website can validate the User ID and the token credentials bycommunicating with a validation entity.

Embodiments of the invention are not limited to the above-describedembodiments. For example, although separate functional blocks are shownfor an issuer, payment processing system, and acquirer, some entitiesperform all of these functions and may be included in embodiments ofinvention.

In each of the embodiments described herein, the communications betweencomputer 10 and validation entity 80 may be facilitated by, and/orconveyed through, a gateway (e.g., a proxy server, server entity, etc.)that is disposed between computer 10 and validation entity 80. Such agateway is shown at 90 in FIG. 16. Gateway 90 may act as an intermediarybetween a plurality of verification tokens 40-A, 40-B, . . . and theirassociated computers 10-A, 10-B, . . . on the one side, and a pluralityof validation entities 80-A, 80-B, . . . on the other side. Tokens 40-A,40-B, . . . may be constructed and configured the same as token 40 shownin FIG. 1, and may interact with respective computers 10-A, 10B, . . . ,respective users 1-A, 1-B, . . . , and respective portable consumerdevices 5-A, 5-B, . . . . Computers 10-A, 10B, . . . may be the same ascomputer 10 shown in FIG. 1, and may be coupled to the firstcommunications networks 31, as described above. First communicationsnetwork 31, second communications network 32, merchant websites 20,acquiring banks 50, issuing banks 60, and payment processing network 70are coupled to one another as described above. First and secondcommunications networks 31, 32 are also coupled to a plurality ofvalidation entities 80-A, 80-B, 80-C, . . . , each of which may beconstructed and configured the same as validation entity 80 shown inFIG. 1.

In the below discussion of the embodiments and implementations shown inFIG. 16, a reference number without a suffix -A, -B, or -C genericallyrefers to each of the suffixed items (e.g., entity 80 refers to each of80-A, 80-B, 80-C).

Gateway 90 may receive one or more initial communications from one ofverification tokens 40-A, 40-B, . . . (via one of computer 10-A, 10B, .. . in communication with the token), and may determine from informationin the initial communication(s) an appropriate one of a plurality ofvalidation entities 80-A, 80-B, 80-C, . . . to use to fulfill thetoken's request for a dCVV2 value. For example, each verification token40-A, 40-B, . . . may be configured to operate with portable consumerdevices 5 issued by many different issuing banks 60 or other suchentities, and one or more of the validation entities 80 may beconfigured to process requests from portable consumer devices 5 issuedby respective issuing banks 60 or other such entities. Gateway 90 maydetermine an appropriate one of validation entities 80-A, 80-B, 80-C, .. . based upon the identification information that the token read from aportable consumer device and sent to the gateway in an initialcommunication. For example, a portion of the account number in theidentification information may comprises an unique identifier assignedto the bank 60 that issued the portable consumer devices 5 from whichthe identification information was read.

In one implementation, after gateway 90 has determined an appropriatevalidation entity for the token's request, the gateway may redirect thetoken to conduct further communications with the determined appropriatevalidation entity, or may direct the determined validation entity tocontact the token to conduct further communications. In anotherimplementation, all communications between the verification token andthe determined appropriate validation entity may be conveyed throughgateway 90 (after the gateway has initially determined the identity ofthe appropriate validation entity based upon one or more initialcommunications with the token). This latter implementation may compriserelatively simple passing through of communications between the tokenand the appropriate validation entity with minimal processing by gateway90, or may comprise having the gateway virtually presenting itself asthe appropriate validation entity to the verification token. Suchvirtual presentation may involve gateway 90 decrypting each message fromthe verification token, communicating with the appropriate validationentity to formulate a response to the token's message, and encryptingand sending a response message to the verification token. In each of theabove implementations, and in other implementations, gateway 90 may alsoconduct one or more validation tests on behalf of the appropriatevalidation entity, particularly those related to validating theverification token. In this case, the gateway does not need to send tothe determined appropriate validation entity those communications itreceives from the token that pertain to validation tests that thegateway is handling. Gateway 90 may be associated with, or operated by,payment processing network 70 or the owner thereof. It may beappreciated that, in each of these implementations, Gateway 90 acts asan entity that can provide a device verification value (dCVV2 value) totoken 40, just as in the case that validation entity 80 can provide adevice verification value to token 40 when entity 80 is directlycontacted by token 40.

Referring to FIG. 16, gateway 90 comprises a system having one or moreservers coupled to a communications network that can receive a requestfrom a verification token 40 to process, as described above. One of theservers of gateway 90 is shown in FIG. 16; the server comprises one ormore processors 91 electrically coupled to each of a tangiblecomputer-readable medium 92, a user interface 93, one or more databases96, and a networking facility 94, the latter of which is coupled tofirst and second communications networks 31 and 32. User interface 93comprises one or more video output devices (e.g., displays, screens) andone or more input devices (e.g., keyboard, mouse, trackball, etc.),which enable an administrator of gateway 90 to receive information fromthe server and to provide input to the server. Computer-readable medium92 may comprise a combination of semiconductor memory and non-volatilestorage, such as one or more disk drives and/or non-volatile memory.

Computer-readable medium 92 stores an operating system for the server,which enables processes and applications to be run by processor(s) 91,and enables codes for directing the operation of processor(s) 91 to berun. The operating system provides services to these processes andapplications, and enables these processes and applications to accesscomponents of user interface 93, portions of computer-readable medium92, networking facility 94, and other components of entity 90. Theoperating system may be full featured. Specifically, the operatingsystem provides one or more I/O communications modules that enableprocessor(s) 91 to communicate with user interface 93 and databases 96.Each I/O communications module has an application programming interface(API) with a collection of functions that a processor 91 can call inorder to access the components. The operating system of entity 90 alsocomprises one or more network services modules that can accessnetworking facility 94 and set up communications sessions to entities oncommunications networks 31 and 32, and with SMS relay server 35. Suchnetwork services modules include Microsoft's Windows CommunicationsFoundation (e.g., .NET 3.0, .NET 4.0, etc.), Apple's CFNetworkFramework, the networking section of the Unix and Linux operating systemkernels, and the OS Services Layer and the Base Services Layer of theSymbian operating system, and the like. Each of these network servicesmodules can be non-exclusive (e.g., capable of serving more than oneprocessor and more than one process/application) and each provides anapplication programming interface (API), which has a collection offunctions that a processor 91 can call in order to manage communicationswith another entity. With these API facilities, a collection of APIfunction calls can be readily constructed for a processor to executethat enables the processor to establish a communications channel with anentity on a communications network coupled to networking facility 94,and to exchange messages and data with the entity. The above operatingsystem, modules, and APIs all include instructions that direct theoperation of processor(s) 91.

One or more databases 96 may be configured as database servers, whichprocessor(s) 91 can access via networking facility 94 over a privatecommunications network 97, which is illustrated by the dashed line inFIG. 16. Gateway 90 conventionally has a clock 98 for tracking time anddates for various applications. Clock 98 may be a simple counter ofseconds, or fractions thereof, that can be read by processor 91 by anI/O operation, or may comprise a more complex arrangement of hardware orfirmware that can provide the various components of the current date andtime (year, month, day, hour, minute, and second) in various registersthat can be read by processor 91 through the execution of one or moreI/O operations.

Gateway 90 may comprise code embodied on computer-readable medium 92that directs data processor 91 to communicate with a computer 10 and anassociated verification token 40 using networking facility 94 overcommunications network 31. This code may include instructions thatestablish a communications session with computer 10, including theoption of establishing an SSL session with mutual authentication andencryption based on a triple DES algorithm, and instructions for sendingand receiving messages to verification token 40 through thecommunications session. Gateway 90 may further comprise code embodied oncomputer-readable medium 92 that directs data processor 91 to receiveencrypted identification information sent by verification token 40, andcode that directs data processor 91 to decrypt the encryptedidentification information. The identification information may beencrypted by a session key of an SSL session or by an encryption keystored in verification token 40 and known to gateway 90, or may bedoubly encrypted by both keys. The latter key may be uniquely assignedto the token, as described above. Gateway 90 may further comprise codeembodied on computer-readable medium 92 that directs data processor 91to determine, from the received identification information and/or thetoken's identity (e.g., the token's serial number), the appropriate oneof the validation entities 80-A, 80-B, 80-C, . . . to be used forfurther processing of the request from verification token 40. For this,data processor 91 may access one of databases 96 for a correlation listthat relates identification information (or portions thereof) tovalidation entities 80, and/or for a correlation list that relates tokenidentifiers to validation entities 80, and may then compare theinformation received from the token 40 with the correlation list(s) todetermine the appropriate one of the validation entities 80. Gateway 90may further comprise code embodied on computer-readable medium 92 thatdirects data processor 91 to apply one or more validation tests aspreviously described above, and to continue processing the request fromtoken 40 if a selected number of validation tests are passed. Variousways of continuing the processing are described below in variouspossible implementations of gateway 90. The above codes for gateway 90,and codes for gateway 90 described below, may be implemented in anynumber of programming languages. Furthermore, one of ordinary skill inthe art will be readily able to construct instructions to implementthese codes in view of this disclosure without undue experimentation.

In one implementation, gateway 90 may further comprise code embodied oncomputer-readable medium 92 that directs data processor 91 to send acommunication to token 40 (by way of its associated computer 10)informing the token to contact the determined appropriate validationentity 80 to obtain a dCVV2 value. This communication may include a URIDfor the determined appropriate validation entity. Token 40 may thencommunicate with the determined appropriate entity 80 as describedabove, and no changes to entity 80 are needed. In this implementation ofgateway 90, the code may further direct data processor 91 to send acommunication to the determined appropriate validation entity 80 thatinforms the entity of the request from the token 40 (along with anindication of the identification information sent by token 40), andinforms the entity that the token 40 will be contacting it for a dCVV2value for the identification information (as sent to gateway 90 by thetoken 40). This communication by gateway 90 can serve as an additionalsecurity measure that assures the appropriate validation entity 80 thatthe subsequent contact by token 40 is legitimate.

In another implementation, gateway 90 may further comprise code embodiedon computer-readable medium 92 that directs data processor 91 to send acommunication to the determined appropriate validation entity 80 with anindication of the identification information received from theverification token 40, and with a request for the validation entity togenerate a dCVV2 value for the identification information and to sendthe dCVV2 value to the verification token 40 (by way of its associatedcomputer 10). This communication may include a URID for the verificationtoken 40. The codes of the validation entity 80 previously describedabove may be augmented to direct the entity's processor 81 to receiveabove-described communication from gateway 90, and to initiatecommunications with the requesting token 40. The codes of validationentity 80 need not need to direct the entity's processor 81 to receivethe identification information from the requesting token (as that mayhave been provided to the entity by gateway 90); however, as an addedsecurity measure, the requesting token 40 may provide the identificationinformation to entity 80, and the entity may include the code to receivethe identification information from the token. In this implementation ofgateway 90, the code for gateway 90 may further direct data processor 91to send a communication to the verification token 40 (via the associatecomputer 10) informing the token that the determined appropriatevalidation entity 80 will be communication with it to potentially send adCVV2 value.

In yet another implementation of gateway 90, the gateway may furthercomprise code embodied on computer-readable medium 92 that directs dataprocessor 91 to: (1) send the initial communication from the requestingtoken 40 and/or an indication of the identification information sent bythe requesting token 40 to the determined appropriate validation entity80 to obtain a dCVV2 value; (2) to receive back a dCVV2 value from theappropriate validation entity 80; and (3) to send the dCV2 value to theverification token 40. This implementation of gateway 90 enables avalidation entity 80 to omit the code for establishing communicationswith the computer 10 used by the requesting verification token 40 (thattask may be handled by gateway 90). Those codes of entity 80 describedabove that direct communications with token 40 may be modified to directthe communications to gateway 90 instead. This implementation of gateway90 enables the requests from many tokens 40 to be grouped together formore efficient handling by entity 80. In addition, since gateway 90 isvirtually presenting itself to the verification token 40 as a validationentity, gateway 90 can serve as an Internet firewall and protect thevalidation entities 80-A. 80-B, . . . from malicious Internet attacks.

In yet another implementation, gateway 90 handles the initialcommunications with token 40 to determine the appropriate validationentity 80, and then hands over the communication channel to thedetermined validation entity 80 to complete the fulfillment of thetoken's request. All communications between the requesting token 40 andthe determined entity 80 may be conveyed through gateway 90. If gateway90 has previously established an SSL session with the requesting token40, gateway 90 may send the session key(s) and protocols to thedetermined entity 80 so that the entity can take over the session (e.g.,take over encrypting the communications to the token with the sessionkeys and protocols). For this implementation, gateway 90 may furthercomprise code embodied on computer-readable medium 92 that directs dataprocessor 91 to (1) send a communication to the determined appropriatevalidation entity 80 with an indication that it is to handle furthercommunications with the requesting token (as routed through gateway 90)and, optionally, session information (which may include SSL session keysand protocols), (2) to forward further communications that gateway 90receives from the requesting token 40 to the determined entity 80, and(3) to forward communications that gateway 90 receives from thedetermined entity 80 to the requesting token 40. For this, gateway 90may maintain a table in memory or one of its databases 96 that trackschannels that are currently being passed through gateway 90, with eachrecord in the table having the identity of the requesting token, thedetermined validation entity, and session information. To carry out theabove second action, the code may direct processor 91 to access thechannel table to locate the determined entity 80 for the requestingtoken 40, an to then forward the communication packets from therequesting token to the entity that was located in the table. Gateway 90may encapsulate these forwarded communication packets to preserve theirheader information, and may include an indication of the identity of therequesting token 40 for the benefit of the determined entity 80. Tofacilitate the above third action, the determined validation entity 80may send its communication packets for the requesting token 40 togateway 90 in encapsulated form, optionally along with an identifierthat identifies the requesting token in the capsule. Gateway 90 can theninclude code that directs its data processor 91 to extract, from theencapsulated packet, the token identifier and the packet that is to besent to the requesting token 40. If the extracted packet already has thedestination address for the computer 10 coupled to the requesting token40, then the encapsulated packet does not need to include the identityof the requesting token. If the extracted packet does not include thedestination address, the code of gateway 90 may direct data processor 91to determine the destination address from the extracted token identifierand the above-described table of channel information, and to insert thedetermined destination address into the extracted packet before sendingit to computer 10. This action can provide an additional layer ofsecurity. In addition, since gateway 90 is virtually presenting itselfto the verification token 40 as a validation entity, gateway 90 canserve as an Internet firewall and protect the validation entities 80-A.80-B, . . . from malicious Internet attacks.

The above implementation of gateway 90 enables a validation entity 80 toomit the code for establishing communications with the computer 10 usedby the requesting verification token 40 (that task is handled by gateway90), and to include code that directs processor 81 to receive theindication from gateway 90 that it is to handle further communicationswith the requesting token 40 (as routed through gateway 90) and,optionally, to receive the session information for the furthercommunications (which may include SSL session keys and protocols). Thosecodes of entity 80 described above that direct communications with token40 may be modified to direct the communications through gateway 90. Forthis, validation entity 80 may further comprise code embodied oncomputer-readable medium 82 that directs data processor 81 to create andmaintain a table in memory or one of its databases 86 that trackschannels that are have been handed over from gateway 90; each record inthe table may have the identity of the requesting token, theidentification information of gateway 90, and the session information.The communication codes of entity 80 may be modified to receiveencapsulated communication packets from gateway 90, to extract fromthese packets the communication packets from token 40, and to consultthe above table to find the identity of token 40 and session informationif such cannot be determined from source address of the extractedcommunication packets or any token identity sent by gateway 90 in thecapsulated packets. The communication codes of entity 80 may also bemodified to encapsulate the communication packets for token 40 inpackets to be sent to gateway 90, optionally along with an identifierthat identifies the requesting token in the capsule, and to send theencapsulated communication packets to gateway 90.

From the above description, it may be appreciated that validationentities 80 and gateway 90 are separate entities from computers 10, andare separate entities from verification tokens 40. It may also beappreciated that in several embodiments and implementations thereof thatcomputers 10, validation entities 80, and gateway 90 are addressed asseparate network nodes on communications network 31 (e.g., havedifferent network addresses in the communication packets), and thattokens 40 communicate through the network nodes of computers 10 toentities 80 and/or gateway 90 (e.g., computers 10 construct and decodenetwork communication packets for tokens 40). it may be also appreciatedthat, in several embodiments and implementations of token 40, token 40may unconditionally send the read identification information tovalidation entity 80 and/or gateway 90 without requiring a validationbetween the token and the user, such as may be provided by the entry ofa PIN or the provision of a biometric sample (e.g., fingerprint); andthat token 40 may send the read identification information in arelatively short amount of time (such as within one minute of beingread, and typically within ten seconds).

It may be appreciated that Embodiments of the invention enable a user toobtain a dynamic device verification value for a portable consumerdevice 5, such as a credit card, which the user can provide to amerchant site as payment data for completing a purchase transaction. Thedynamic device verification value reduces the potential for fraud bythird parties that may fraudulently obtain the account number of theportable consumer device (e.g., through skimming). In addition, theinteraction of the portable consumer device with the verification token40 enables the token to effectively inform the validation entity 80 thatthe portable consumer device 5 was physically in the presence of thetoken at the time the request for the device verification value wasmade, thereby providing a “card present” status for online purchasesmade with the portable consumer device. Embodiments of the inventionalso have utility in providing device verification values to the user ina highly secure manner, thereby enhancing security and reducingfraudulent use of credit cards. Moreover, embodiments of the presentinvention provide these services and benefits to the user with a veryhigh “ease of use” factor.

It should be understood that various embodiments of the presentinvention as described above can be implemented in the form of controllogic using computer software in a modular or integrated manner. Basedon the disclosure and teachings provided herein, a person of ordinaryskill in the art will know and appreciate other ways and/or methods toimplement embodiments of the present invention using hardware and acombination of hardware and software.

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example, C,C++, C#, Java, C++ or Perl using, for example, conventional orobject-oriented techniques. The software code may be stored as a seriesof instructions, or commands on a computer-readable medium, such as arandom access memory (RAM), a read only memory (ROM), a magnetic mediumsuch as a hard-drive or a floppy disk, or an optical medium such as aCD-ROM. Any such computer-readable medium may reside on or within asingle computational apparatus, and may be present on or withindifferent computational apparatuses within a system or network.

The above description is illustrative and is not restrictive. Manyvariations of the invention and embodiments thereof will become apparentto those skilled in the art upon review of the disclosure. The scope ofthe invention should, therefore, be determined not with reference to theabove description, but instead should be determined with reference tothe pending claims along with their full scope or equivalents.

One or more features from any embodiment may be combined with one ormore features of any other embodiment without departing from the scopeof the invention.

A recitation of “a”, “an” or “the” is intended to mean “one or more”unless specifically indicated to the contrary.

All patents, patent applications, publications, and descriptionsmentioned above are herein incorporated by reference in their entiretyfor all purposes. None is admitted to be prior art.

What is claimed is:
 1. A verification token comprising: an interface; acomputer-readable medium; a data processor electrically coupled to theinterface, and the computer-readable medium; code embodied on thecomputer-readable medium that directs the data processor to transmit atleast a portion of identification information to an entity that canprovide a dynamic PAN; code embodied on the computer-readable mediumthat directs the data processor to receive, after transmitting saididentification information, the dynamic PAN from the entity; and codeembodied on the computer-readable medium that directs the data processorto locate a browser web page on the computer that has a form field, andto enter the dynamic PAN received from the entity in the form field,wherein the verification token is configured to be located within ahousing of the computer or a peripheral device electrically coupled tothe computer, wherein the computer and the peripheral device comprisedata processors that are separate from the data processor in theverification token.
 2. The verification token of claim 1 furthercomprising: a serial number and an encryption key, and wherein theverification token is configured to transmit the serial number and amessage encrypted by the encryption key to the entity, the serial numberand the encryption key being uniquely assigned to the verificationtoken.
 3. The verification token of claim 1 wherein the interface is aUSB connector.
 4. The verification token of claim 1 wherein the codethat directs the data processor to receive the dynamic PAN from theentity further directs the data processor to receive address informationfrom the entity; and wherein the verification token further comprisescode embodied on the computer-readable medium that directs the dataprocessor to locate a browser web page on the computer that has aplurality of form fields for address information, and to fill saidfields with respective portions of the address information received fromthe entity.
 5. The verification token of claim 1 further comprising:code embodied on the computer-readable medium that directs the dataprocessor to prompt a user to enter a password on a keyboard of thecomputer, to read a password entered by the user, and to compare theentered password against a stored password embodied on thecomputer-readable medium.
 6. The verification token of claim 1 furthercomprising: code embodied on the computer-readable medium that directsthe data processor to display the dynamic PAN received from the entityto the user on a display device of the computer.
 7. The verificationtoken of claim 1 further comprising: a portable payment device readercoupled to the data processor.
 8. The verification token of claim 1further comprising a security module coupled to the data processor.
 9. Aperipheral device comprising the verification token of claim
 1. 10. Acomputer comprising the verification token of claim
 1. 11. A methodcomprising: transmitting, by the data processor in a verification token,at least a portion of identification information to an entity that canprovide a dynamic PAN, wherein the verification token is configured tobe located within a housing of the computer or a peripheral deviceelectrically coupled to the computer, wherein the computer and theperipheral device comprise data processors that are separate from thedata processor in the verification token; after transmitting saididentification information, receiving the dynamic PAN from the entity;locating a browser web page on the computer that has a field for thedynamic PAN; and entering the dynamic PAN received from the entity inthe form field.
 12. The method of claim 11 further comprising:transmitting a serial number and a message encrypted by an encryptionkey to the entity, the serial number and the encryption key beinguniquely assigned to the verification token.
 13. The method of claim 11wherein the interface is a USB connector.
 14. The method of claim 11wherein receiving the dynamic PAN from the entity further comprisesreceiving address information from the entity, and wherein the methodfurther comprises: locating a browser web page on the computer that hasa plurality of form fields for address information, and to fill saidfields with respective portions of the address information received fromthe entity.
 15. The method of claim 11 further comprising: prompting auser to enter a password on a keyboard of the computer, to read apassword entered by the user, and to compare the entered passwordagainst a stored password.
 16. The method of claim 11 furthercomprising: displaying the dynamic PAN received from the entity to theuser on a display device of the computer.
 17. The method of claim 11wherein the verification token further comprises a portable paymentdevice reader coupled to the data processor.
 18. The method of claim 11wherein the verification token further comprises further comprising asecurity module coupled to the data processor.
 19. The method of claim11 wherein the method is performed by the computer.
 20. The method ofclaim 11 wherein the method is performed by the peripheral device.